Buying Collision Car Insurance In Georgia?

Answer 1

A car is a valuable investment. It may be worth many thousands of dollars yet can be severely damaged in a blink of an eye. If a vehicle owner in Georgia causes damage to his or her car, repairs can be quite costly. Collision insurance covers the cost of damage to a vehicle owned by the person carrying the policy. This is separate from liability insurance which covers damage to vehicles and property owned by someone else. The cost of collision insurance depends on the value of the car and the driving record of the customer.

Buying The Proper Amount Of Collision Coverage

If a car is purchased brand new and is being financed, lenders will require the owner to carry a certain amount of collision insurance. The car's title is being held by the bank or financial institution and is in a sense the property of the lender until the loan is paid off. The car acts as security for the loan because of its value. If the vehicle should be severely damaged in an accident caused by the registered owner, car payments will likely cease because the owner needs to pay for a new car. The lender will lose on the investment because the damaged car is now virtually worthless.

Collision insurance amounts are determined by the value of the car purchased. When asking for an insurance quote from an agent the car's make, model and VIN are needed. This will help determine the proper amount of collision insurance required to satisfy the lender.

Combining Collision and Comprehensive Insurance

Comprehensive insurance is nearly always included in a quote given to Georgia drivers. This coverage is very important because in many cases an at-fault individual cannot be identified. If a driver finds his or her car damaged in a supermarket parking lot and no note is attached to the windshield, damages cannot be claimed through the at-fault party's liability coverage. Most likely the culprit was not covered properly and decided to leave the area immediately. Or if an act of nature causes damage, such as a falling limb from a tree, collision insurance must be supplemented with comprehensive coverage to pay for the repairs.

Insurance For Vehicles Owned Outright

Even if a car is fully paid for and the owner holds the title, careful consideration should be given to carrying collision insurance. The car may still be quite valuable and may cost much to repair if damaged in a traffic accident. Collision coverage includes payment for damages even if another vehicle is not involved. A driver can lose control of a car and slide off the road. Any damage will be covered under the collision insurance policy. Parents who have teen drivers may also want to keep their collision insurance in force and add the young driver to the policy. This is important if the teenager is driving a car owned by the policyholder regardless of the vehicle's value.