By Brandy
Collision Damage to Car – How Collision Insurance is Important
Although most states only require drivers to carry liability insurance you may not want to settle for the minimum. The problem is too many drivers settle for the least amount of insurance required in order to save a few dollars a month.
If you are in an accident and do not have enough coverage – all of the expenses will be yours to pay, out of your own pocket. For that reason the cost of monthly premiums make much more financial sense then trying to pay for pricy repair costs after an accident.
Consider this scenario:
- You have a liability car insurance policy with the required minimum for your state just so you can at least drive legally. Unexpectedly you have an accident involving another vehicle and it is time to file a claim. Suddenly you realize this means your own car repairs and even your hospital visit are your financial responsibility. Even a brief visit to the Emergency Room with nothing wrong can cost a small fortune out of pocket, if you do not have health insurance. Not only that but then you find out the state minimum wasn’t very high and you may have to pay for a large part of the other driver’s car repairs and medical bills.
- The bottom line is that trying to save by having less car insurance coverage could easily cost you a great deal more farther down the road. You should also realize with liability car insurance you will also be without any type of coverage for your own vehicle. Suddenly those monthly premiums for collision car insurance protection do not seem too bad when faced with the reality of all the expenses you would have to pay out of your own pocket should a collision occur in which you are the at-fault driver.
Determining the Price
What you have probably realized by now is that you can easily afford the cost of collision car insurance premiums as opposed to paying for your car repairs and possible medical bills following an accident. Of course, it would also help if you realize some ways you may be able to get lower rates.
Collision insurance is important coverage to have. If you think it is out of your budget consider some ways to get lower rates:
- Shop around – You should always take advantage of the opportunity to get free car insurance policy quotes. Usually, it takes nothing more than your zip code to get quotes and you can get quotes from multiple companies at one time. The site we recommend checking out is CollisionInsuranceQuotes.com. This is the best way to lock down the lowest rates. In fact, even if you already have coverage it is a good idea to compare your rates with other competitors. Do this every time your policy is up for renewal so you can always get the best deal.
- Play with the Deductible – The lower your deductible the higher your collision auto insurance premium rates will be. Try to avoid taking a deductible as low as $250. If you increase your deductible to around $500 – $750 your rates will be lower and you should be able to cover this amount in the event of an accident. Going as high as $1000 for your deductible may be a little risky, and you may only want to consider this if you can actually put aside the money in a savings account so it is there if you do need to use it.
- Find out About Discounts – Many insurance providers offer lower rates if you are on active duty or retired military personnel. Maybe you qualify for the “Good Student” discount. Find out what affiliations you may have that could earn you cheap car insurance coverage rates.
- Go Paperless – By going green you could be saving green on your car insurance premiums. Have your payments set up to be an autopay from your checking, savings or credit card. You may be surprised just how much green this can save you. Also, try to pay annually or quarterly instead of monthly and your collision insurance rates will be even lower.