I wanted to understand the main parts of car insurance in order to understand what each are and why you have to pay so much for once a part. The three primary parts are liability, collision, and comprehension. This article is all about collision car insurance.
This portion of you policies repairs to your vehicle if you are at fault in incident. If the other driver reaches fault, then their insurance pays for the repairs to your vehicle in full.
Now when i said "in full", I mean that another company pays all of it and sometimes rents that you car while your car always be repaired. If you were liable, then your insurance company pays for the repairs - with no deductible. Most deductibles are $250 but can vary from $500 as much as $1000. A deductible is the amount you have to pay out of your pocket along at the repairs.
Let's say you crash your car. The repairs on your car are going to be $3000. Your insurance company will use an adjuster to calculate the repairs or lead you to a body shop to get a estimate. Then, the fortunately pays you $3000 minus the deductible ($500) or $2500. Some insurance companies require you to pay the $500 ahead of time before they cut their part of the check.
Let's talk deductibles for a moment. If you have was built with a $250 deductible, then your premium is going to be much higher than that a $500 deductible. In most cases, you can raise your deductible and save money on additional money you were paying and show $500 sitting in the bank just in case you have an accident. Its usually that significant of an increase in premium.
Again, if you finance this, then you will should to purchase collision insurance. If you have an older vehicle, you could probably save money on money you spend close by collision insurance and pay for to buy another used vehicle much like the one you wrecked. Make sense?
In summary, collision insurance covers positive changes to your vehicle after you are at fault in a wound, less your deductible. If you car is paid off from, then you need to observe whether you really need this coverage or not satisfying you, depending on age and condition of you car..