When do I need collision insurance?
You’re driving down a nice country road enjoying the pleasant fall day when suddenly a white-tail deer leaps out of the bushes. The surprise on his face matches yours as you turn the wheel just in time to miss him, but unfortunately, you run off the road and into a ditch ramming your front end into a large oak tree. This is when you definitely need collision coverage insurance.
Many people think collision insurance is only applicable if you have an accident with another car. Collision insurance pays to repair or replace your vehicle after a collision with another car or object, such as the oak tree. If your car was financed upon purchase, then your lending institution probably insisted on you having what is known as “full coverage”. That would include liability, comprehensive and collision insurance. That not only assures the financial institution will be reimbursed in the event that your car is completely destroyed, but it also assures you that you can have your car repaired. Without collision coverage, the financial institution will have little sympathy for you if you still owe a balance on your automobile, and you will be responsible for repayment.
Considering all these benefits you should opt for collision insurance that will cover you financially. Additionally, hiring Baltimore Injury Lawyer can aid you in the legal process with the judiciary and the insurance company. This way you can avoid huge bills that you get from the repair shop.
But if my car is not financed, do I still need collision coverage?
The answer depends. Could you do without your automobile in the event of an accident? If the answer is no, then would you have enough money to repair the damage or replace it? Collision coverage ensures that you will have the money for repairs and that if it is “totaled out”, which simply means the costs for repairing your vehicle would be more than the automobile’s value, that you will have funds to acquire another one.
My car is an older model, why do I need collision coverage?
As we all know, the value of any automobile decreases with age. In the event of an accident, the insurance claims agent will have an established value or a “blue book” value, which will determine how much you will be allowed for repairs. If the “blue book” value of your car is less than repairs would cost, the insurance company will pay you that amount instead, minus your deductible. You will need to determine if the value is worth your premium, but also keep in mind that if you do not have collision coverage, you will receive no payment for your automobile from your insurance company in the event of an accident.
Do I need an insurance agent?
Opinions vary, but basically a lot of people find having a known contact person to deal with very comforting. Many people shop online for their insurance coverage. Collision insurance is available through most automobile insurance companies, but be aware that different states have different laws about what insurance coverages a driver must have on their vehicle.
The best way to determine what coverage is right for your car is to find an insurance agent you trust, giving them pertinent information so they can read over the coverage with you. Like any other major purchase, check around for pricing and read reviews by customers to see how the company responded to their situation. Check with the Better Business Bureau to see if they have any complaints about the company you are considering. I have listed two websites below that may help you find useful information.
Once you establish insurance coverage with your agent, update this information with them on a yearly basis and let them help you determine if your coverage is adequate…
Peace of mind is knowing that in the event of an accident, you have the protection you need for you and your family.