Collision auto insurance – Even though it is not mandatory, why is collision auto insurance recommended for drivers? Why is minimum requirement simply not sufficient to give us peace of mind when we have a car accident? The main reason for someone needs collision coverage is that minimum requirement fails to cover the medical bills once we have an accident.

These Three Factors Make You Realize the Importance of Collision Auto Insurance
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Of course, it is useful and keeps us fully protected, but the insurance premiums will be automatically higher. Is there a chance for us to get affordable insurance that includes collision coverage? The following information will be about this problem: its use and tips for buying.

How is Collision Coverage Useful for Drivers ?

From the name, we can conclude that this coverage gives protection upon our car in case it is damaged in a collision with another cars or property. Either we as the driver are at fault or not in the accident, our car is still covered.

You may be thinking that there has been liability insurance that is included in the minimum requirement. A lot of people do not know that liability coverage does not pay the repair cost of our car. Instead of your car, the one that gets covered on the repair cost is another car involved in an accident.

You have to pay your own cost. In fact, without collision auto insurance, you will be burdened for the skyrocketing repair cost, especially when the car is seriously damaged.

How Higher Deductible is Useful to Reduce Insurance Premiums

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Another problem may arise if we decide to get collision insurance, namely higher insurance premiums. One of the best ways to reduce the premiums is by increasing the deductible.

Before that, what is deductible actually? It is the amount of money that we have to pay towards any car repair when our car becomes damaged in a car accident.

Let’s say we have deductible $500. You have to pay this $500 to the company to get the car repair started once we have an accident. The rest of cost will be paid by the company.

If we just have lower deductible, it means the company has to pay more. Consequently, the premiums will be higher. But, if we pay the deductibles a lot higher, we can get lower premiums since most of the car repair cost has been paid in advance.

How to Significantly Reduce Insurance Premiums

Deductible is only one way. We have the other tips to get lower collision auto insurance premiums. First, before we decide to purchase car, we have to consider how the car affects the insurance premiums.

It has to be noted that some types of car are a lot cheaper to insure such as minivans and small sedans. Meanwhile, sport car will make our insurance premium higher.

Then, insurance companies have several types of discounts that you can ask. Discounts will also significantly reduce the premiums. One of them is good driving discounts. You can be qualified for this discount only if you have good driving record.

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Make sure you drive safely and carefully, avoid speeding tickets and obey all traffic regulations whenever you are driving on the streets. Only then, you are qualified. This type of discount will reduce the collision auto insurance premium up to around 50%.

Another discount is low mileage discount. In order to be qualified, you need to drive on your car when necessary or avoid driving on the weekends. Some other discounts include safety features discounts (if the car has been installed with safety devices such as anti theft device, air bags, etc), and good student discount.

Finally, before you make a decision, you have to get quotes from several companies and the compare them. Once you are sure about certain company, you can get collision auto insurance that is affordable and has sufficient coverage.