By David Mrozek
Choosing the right insurance coverage for your cars can be pretty confusing for most people. Possibly the most confusing is collision coverage. Which type is the right one for your family? How do they apply and how does that affect your premiums? It's not as hard as you think, so let's take a closer look.
There are three different types of collision coverage: Broad Form, Regular (sometimes called standard), and Limited. If you get into a car accident, this determines whether your insurance company will fix the damage to your car and how your deductible will be applied. First lets define them.
- Broad Form Collision: Here your insurance company will fix your car and you will only pay your deductible if you're substantially at fault in the accident. If you're not at fault, your deductible will be waived. This is the most expensive form of collision coverage since your company has to fix the car and you may not have a deductible.
- Regular Collision: Sometimes called Standard Collision, here your insurance company will fix your car and you'll pay your deductible regardless of who is at fault in the accident. Since they will always get your deductible, Regular collision is less expensive than Broad Form.
- Limited Collision: This one is tricky, and a little dangerous. With Limited Collision, your company will only fix your car if you're not substantially at fault and you'll pay your deductible. If you're at fault, they will not fix your car at all. In over 17 years in the business I've never written a policy with Limited Collision. I don't recommend it to anyone and I wish they would just remove the option altogether. If you choose this option you will save money on your collision coverage because the insurance company will only fox your car if you're not at fault.
So, which one is best for you? That largely depends on your driving history and your tolerance for risk. If you've never been at fault in an accident consider regular collision. It's the best value available. I recommend this option to every client I have, but I'm sure to suggest they put their savings in a separate place or account in case they need it. Once you've saved your deductible, the rest of the savings can go right in your pocket.
Try this exercise. Look at your current coverage and ask your agent what you'd save if you switched to regular collision. Chances are, you'll save close to $100 per year. Then just do the math and figure out how long you'd have to drive accident free before you saved your deductible. Has it been that long or longer since you were in an accident? If it has, why not make that switch today?
Now, nobody can predict when your next accident may come but, if you usually go a long time between accidents this could be a real saving opportunity. And, if you have more than one car, it gets even better.
In my agency, we're committed to making recommendations based on what you need for your particular situation. With some of the best rates in the state, we can usually get you better coverage than you have right now and save you a few dollars in the process. Plus you'll get the advantage of working with an agent that has over 17 years experience and a track record of amazing service.
Article Source: http://EzineArticles.com/?expert=David_Mrozek
This is dummy text. It is not meant to be read. Accordingly, it is difficult to figure out when to end it. But then, this is dummy text. It is not meant to be read. Period.
Related Post
Noticing The Signs Of Senior Dental Issues?
By Ivy Creel
As you are growing older are you starting to notice that along with an arr- Keys to Saving Money on Physician Malpractice Insurance
By Maria Palma
One of the biggest complaints about malpractice insurance is that it see
- Commercial Insurance for Your Business
By Andrew Stratton
When you own a business, you need to protect it with commercial insu
- Understanding Individual Dental Plans
By Ariel Norton
If you want to get the best benefits out of the dental coverage, you s