While most drivers are confident that they really cannot cause any damage their own vehicle when at the wheel, the propensity to cause an accident has a 1 in 10 chance within a decade of plying on the roads. It is important to note that automobile collision insurance depends primarily on the habitual makeup of a driver who frequently drives during the night or even in areas prone to drunken driving. All these factors are seen as risk factors that impact the amount of automobile collision insurance. More so when it concerns a costly vehicle, collision coverage makes good the loss incurred by accident.
You can also read: Working from Home: Don’t Forget to Let Your Car Insurance Company Know
Having said this, the rest of the article throws light on the various benefits attached to automobile collision insurance policies.
Damages caused by the owner himself
Collision insurance covers the damages caused to the vehicle on account of the owner. It is here that the insurer pays for the repairs of the vehicle. Given the context when the mechanic costs of repairing the damaged vehicle are more than the vehicle’s value, the insurers will step in to pay for replacements based on the market value of the vehicle at the time of the mishap.
You can also read: 5 Things That Is To Be Included In Your RV Insurance
Damages caused by another driver
Auto collision coverage can also be availed in a situation when the owner is not at fault, with his car being damaged on account of a reckless driver on the road. The insurance company lends a helping hand in meeting the following expenditures.
The insurer while paying for the repairs of the car will seek reimbursement of the same from the insurance company of the erring driver
Paying for non-covered sections of the policy
Another advantage stemming from automobile collision insurance is that the owner can still derive benefits for damages not included as part of the insurance policy. The following are the scenarios.
You can also read: Policyholder’s Rights in Car Insurance
a) In the event the vehicle is not covered under the comprehensive coverage policy which includes insurance to damage caused by vandalism or even theft, the collision coverage policy insures all such losses
b) In situations concerning hit-and-run cases or even during accidents caused by a driver without a valid license can help the owner recover costs of repairs
While auto collision insurance is a safe reprieve to damages caused by unforeseen eventualities, it will be a prudent move on the owner’s part to decide whether or not he would benefit from a collision coverage policy. Enlisted are the factors which will make this tricky decision click.
- The vehicle’s market value – If the vehicle’s value is less, it is a worthwhile decision to personally pay for accident repairs than taking the refuge of an insurer.
- In contrast, if the vehicle’s value is pretty huge, it makes sense to opt for a collision insurance policy.
- When the vehicle is attached to a loan, it is a safe proposition to invest in collision coverage as part of the auto insurance policy.
- It is common knowledge that vehicles are subject to wear and tear, which will depreciate their market value over time. Taking into cognizance the age of the vehicle when compared to the collision insurance will help the owner make a worthwhile choice whether to opt for collision coverage or not.
While it is an intelligent choice to avoid accidents occurring in the first place, it is better to be safe by opting for collision coverage, just to rest assured to avoid unnecessary expenditure and panic during unforeseen exigencies.