Collision Auto Insurance

Collision auto insurance is good if you are at fault in an automobile accident. With collision auto insurance you will have damages that were caused to your vehicle in an automobile accident paid for. You should expect to receive up to the fair market value of your car for any repairs that need to be done when you have collision auto insurance.

What some people over look with collision auto insurance is that the amount of money you receive for repairs may be considerably lower than what your loan balance is, or what it would cost to replace your vehicle. So if you decide to get collision auto insurance you may want to also think about getting gap insurance also. This is especially true if your vehicle is leased or financed. With both collision auto insurance and gap insurance you can get reimbursed for the difference of both what your vehicle is worth plus what you still owe on the vehicle.

Like with just about any type of insurance there usually is an insurance deductible with collision auto insurance. An insurance deductibles are different amounts for all insurance companies, but it all comes down to the amount of money you have to pay out of your own pocket before the insurance company will start to pay for any repairs in an accident. Just remember the more money you are willing to pay out of your own pocket, or the higher the deductible, then the less your collision auto insurance premium will cost you.

There are currently no states that require you to have collision auto insurance. You want to keep in mind though that if you have a vehicle financed through a lender or you have purchased your vehicle from a dealership, then the lender or dealership may required you to get collision auto insurance. Of course if you are required to have collision auto insurance by a lender or dealership then you should also get the gap insurance.