Not sure about collision insurance? You should weigh your options

green old carDo you have an old car? Have you looked up its Blue Book value recently? If it is not worth that much, it might not be worth it to you to pay costly insurance premiums to protect your car in case you hit someone. It is hard to know exactly what to do when it comes to your car insurance. However, knowing more about the specifics of collision insurance can help you make a more informed decision.

Collision insurance covers the cost of your car if you are involved in an accident. Additionally, it also pays you the fair market value for your vehicle if you are involved in an accident and your car is declared a total loss. Collision insurance does not cover the cost of repair other vehicles or property involved in an accident. In fact, collision insurance is optional.

The reason people pay for it is to protect their vehicles when they are at fault in an accident or to protect them if someone who does not have insurance hits them. However, if your car is not worth that much, than the cost of collision insurance may not make sense. Collision insurance does, however, make sense for new vehicles. In fact, it is practically essential.

One Response to “Not sure about collision insurance? You should weigh your options”

  1. […] full coverage, but it’s a good idea on all newer cars, regardless of financing status. For older cars, personal injury protection (PIP) and liability is usually all you’ll need, but if your car is still worth a bit or you live in a high crime area, adding comprehensive […]

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