How To Determine Your Vehicle Collision Coverage Needs
Hey There! Weaving your way through the different lingo when it comes to auto insurance can be tricky, and trying to figure out what coverages you need might leave you feeling a bit overwhelmed. Luckily, they have a few naming conventions that help when speaking about a particular area of coverage. One type that people often wonder about the most is collision coverage, and you can click here to visit Georgia car insurance where you can compare collision coverage quotes from your local providers no matter where you live in the United States.
First off, what is collision coverage? Collision coverage is intended to pay for the damages sustained to your vehicle (or the cost of replacing it in the event it is beyond reasonable repair) if you are involved in an accident. This coverage is subject to a deductible and the upper dollar amount of coverage provided is determined by how much you think you will need. Keep in mind that collision insurance is different than comprehensive - collision insurance only covers your vehicle when it is involved in a collision accident and comprehensive coverage is intended to cover for non-accident related incidents. These types of events include things like: fire, vandalism, weather, theft, or any other similar types of incidents.
So, how do you determine whether or not you need collision insurance? If you finance your car or plan to buy a car and finance it in the near future be prepared to carry a policy that has this coverage - most financing companies will require you to carry this coverage if you want to finance through them. You will usually have to carry it for at least until your car is paid off or for the life of the finance term. If you own your car outright, then you can decide whether or not you want to carry this coverage. One of the main factors you should use to make this decision is the current value of your car. If you’re driving around an old clunker that’s worth less than $5000, then it might not be necessary to carry this insurance as you may end up paying more in long run for your premium. If your car is worth at least $15K, I would highly recommend carrying this coverage on your policy.
Now that you can make an educated decision on whether or not you need this type of coverage, click here to visit Georgia auto insurance quotes and check collision coverage rates from all the local automobile insurance agencies in your area. Save money, and happy driving!
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