Julie Perry : I am constantly hearing that you need to compare auto insurance quotes, can you tell me what collision insurance is and how to compare this between different insurance companies.

Response : Julie, yes, I know that every blog post or online article is screaming the headline Compare auto insuranceor Compare car insurance” and so any person would naturally think that this is just a way for the marketer to make money or to get information of the client. Believe me, this information can be easily got in many other ways. However, this is a great tip which is over used, but a good one since it can save you money. What is more only the customer is most aware of what he or she wants and therefore you should be educated? I honestly believe that just like driving lessons, the basics of car insurance should be taught to each individual.

Well, let me explain collision insurance. Collision insurance is an important own damage coverage for auto insurance.This is for your car. Supposing you buy a new car, go for your business meeting and park your car in your client’s premises. Someone in the parking lot collides with your car and damages it. This is when collision coverage will pay you for the damages. In its simplest definition, collision auto insurance protects the driver financially in the event of an auto accident that causes damage to one’s auto. Auto insurance pays for damages incurred to the car in a collision, minus deductible. Collision would also pay if you collide with another car or auto. Remember that pothole damage to your car is also considered collision damage. For collision there will be a minimum deductible amount and if you want to waive this you will have to pay a higher premium.

Collision auto insurance can cover a wide range of circumstances. For example, damage to one’s car as the result of striking a telephone pole, driving into a cement pillar in an underground parking lot, or a hit and run accident while the car is parked in a parking lot.

Julie, all insurance companies will have the same coverage for collision auto insurance but the only thing that you need to compare for this coverage is the auto insurance rates and discounts for opting for higher deductible. The second important thing you need to pay attention is and compare auto insurance policy is for the condition of settlement of claim for collison since this might differ from each company. Some settle on actual cash loss basis while some settle on market value basis.

I am sure now you do not hate the words “compare auto insurance quote or compare auto insurance rates, or compare auto insurance coverage and fully understand what they mean.

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Filed under: Auto Insurance ProceduresCar Insurance Comparision

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