Collision car insurance is just one of the main sections of an auto insurance policy.

When purchasing car insurance, it is good to know exactly what you are getting in your policy. To understand collision coverage can be helpful for drivers to realize the value of their insurance and the deductible limit that they should have.

Collision coverage pays for damage in an accident that is caused by the driver. For example, if you hit another vehicle, or hydroplane on a wet road and hit a tree, your car will be damaged in some way. This coverage would take care of the repair costs.

This type of coverage can have an adjustable deductible in the insurance policy. The higher the deductible, the lower the cost of insurance. While many drivers’ first instinct is to set the deductible at the highest maximum to save on the cost on monthly payments, it is only a good idea if the driver can actually afford to pay for that deductible out of pocket. For example, if the deductible is $1,000, but the driver doesn’t have the money to pay that amount of they get into a car accident, the deductible should be lowered to a more affordable limit.

Although there is no law stating that a driver has to have collision insurance, it is strongly recommended, and if you lease or finance your car, your bank may require collision coverage. In addition, if you have a particularly old car that has little value, it may not be worth insuring through collision coverage as the expense of damages may result in more than your car’s worth.

For more information on finding suitable collision coverage for your vehicle, contact Michelle Lim Insurance Services Insurance, located in Alhambra, California. We can aid you in the process of tailoring an auto insurance policy to your needs.