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Coverage:Understanding Collision Benefits
As you go about the process of seeking a new or replacement
automobile insurance policy, you may have some basic questions
about a typical car insurance policy and what is contained
in a particular policy of car insurance in this day and
age. In addition, you may be wondering what type of car
insurance will best meet your needs at this point in time.
In this regard, you may be trying to decide how collision
benefits work and how much you should obtain in collision
coverage for your automobile.
By way of this article, you will be provided with a general
overview of automobile coverage generally and collision
benefits specifically. Of course, if after reading this
article, you find that you do have more questions about
collision benefits or automobile insurance generally, you
will want to take the time to visit with your insurance
agent, your insurance broker, a representative of your insurance
company or with a representative from the office of the
insurance commissioner in your state.
Collision benefits are designed
to cover damages that occur to your own car as a result of
a car accident. Absent collision benefits within your car
insurance policy, you will not be able to file a complain
for damages to your own auto as a result of a car accident.
What Collision Benefits You Do Need
If you have a
newer model car, you likely will want to make certain that
you are fully insured when it comes to collision benefits.
Because you have invested a good deal of money in a new car
(and because you likely have a loan with an outstanding balance
on your new car) you need to make sure that you are fully
insured in this regard, that you have adequate coverage to
make certain that you will not be in an impossible position
if your car is damaged in a car accident. Of course, you will
want to make certain that you have enough coverage to satisfy
any loan you have outstanding and any equity you have in the
car -- meaning the difference between the loan balance and
the current market (or Blue Book) value of the automobile.
If you own an older model auto, you might
want to consider trimming back on the collision coverage for
your auto. Depending on the value of your car, the car simply
may not have enough inherent and actual value in order to
warrant investing in collision coverage for your motor vehicle.
Summary: For More Information
If you have
more information about collision benefits, you will want to
take consider contacting the consumer assistance division
of your stateís insurance commissionerís office. Through this
office, you will be able to obtain a good amount of information
about car insurance generally and about collision coverage
and the important of collision coverage.