Do I Need Collision Insurance and How Much Is It?
Do I Need Collision Insurance?
The possibility exists that anyone can cause a car collision. When this happens, they will be the only ones who will be obligated to pay for the repairs that will need to be done to fix their own vehicles, because liability insurance will only pay for the repairs for the vehicle the policyholder hit. For this reason, people need collision insurance, unless they are prepared to pay out of pocket for their own vehicles' repair bills.
In the event that the Kelley Blue Book states that a car's value is equal to the amount that would be required to repair the vehicle, these vehicles will be considered to be a total loss. A driver that does not have collision insurance would have to pay a large sum of money to repair the vehicle. A driver that has collision insurance, on the other hand, would receive the amount of money the car was worth at the time of the accident.
How Much Collision Coverage Do I Need?
People need enough collision coverage that will pay to have their vehicles repaired if they are ever the cause of an accident. The car may be so damaged that it will not be practical to repair it. In that case, the policyholder will need enough insurance to replace the vehicle.
Is Collision Insurance Per Month?
Collision insurance is different for each vehicle. A vehicle that is highly expensive such as a sports car will have highly expensive premiums. An example is the 2010 Bugatti Veyron priced at $2,000,000. A vehicle that is less costly such as the least expensive vehicle, the 2011 Hyundai Accent GL ($10,705) would be subject to much lower premiums. On average, the Bugatti Veyron receives insurance quotes for $254 per month, while the Hyundai receives a monthly quote of $110. Most cars will fall somewhere in between these two extremes.
Should I Buy Collision Insurance?
Those who know insurance believe that collision insurance is not always necessary, but those who do not have it and get into a car collision will, most likely, wish they had it. Collision insurance will save them from having to pay for their vehicles repairs from their savings. It will replace a car that cannot be fixed for less than the Kelley Blue Book value. It happens that a policyholder's liability insurance does not cover the entire amount of the other party's medical bills and property repair bills, and the one found at fault will have to make up the difference; this will keep policyholders from having enough money to pay for their own vehicle's repairs. With collision coverage, this would not be an issue.Source: www.insurance-comparisons.org