What you need to know about car accident insurance

Do you have to take out collision insurance when you take out your car insurance? This question can only be answered by you; and while it is not required, your answer should be yes if you know what problems not having this coverage can cause you if you are involved in a car accident.

The fact that collision coverage is not mandatory does not mean that it is not necessary in most cases. You should consider whether collision coverage is important to you in relation to the vehicle you are insuring when purchasing your auto insurance policy. You need to decide if your vehicle is really worth repairing if it has been damaged in a car accident.

If you’re insuring an older model vehicle that already has damage, you may not want to pay monthly premiums and the typically high deductible for this type of coverage. A deductible is the amount you pay for any repairs when your vehicle is damaged. For example, if your deductible is $500, you pay the first $500 to start the repair and the insurance company pays the rest. If you are insuring a new model vehicle or one that is in pristine condition, it may make sense to have this coverage and pay the deductible to have it repaired.

The excess for collision coverage varies depending on your decision regarding the value and condition of your vehicle. You may have a low deductible, which will make your monthly premiums higher, but so will coverage. The higher your deductible, the lower your monthly insurance premium will be; but the more money you have to come up with if your vehicle is damaged.

Collision coverage is very important to have if you have a new vehicle that you know you would want repaired if damaged. Most people are willing to have a high deductible on a new car instead of paying a higher monthly insurance rate. Partly because new car insurance can be very high if you don’t scour the internet to find the best policy for you with the lowest possible monthly rates.

With the above knowledge, you will probably be able to find the right car insurance for your specific needs online without spending too much of your precious time looking for an insurance agent. Which we all know we have less of every day.