How to Choose an Insurance Policy for Collision Repair

If you have a car, you should get collision insurance. The type of insurance you choose depends on many factors, and it is ultimately a question of personal choice. While the basic precautions are needed (read the fine print, compare prices and ask questions), you will also need to keep other, more specific, issues in mind when choosing an insurance policy for collision repair.

Difficulty: Moderately Easy

Instructions

1. Call insurance companies to find out what policies are available and what type of collision repair coverage they offer. The most common options are total and partial coverage. Partial coverage will only offer protection if you are the victim and not the cause of the accident, while total coverage will cover you under any circumstances.

2. Choose an insurance policy that offers total and all-inclusive coverage if you have an expensive or custom-made car. While the price of total coverage will be higher, you will still end up saving a lot of money in case of a collision.

3. Take into consideration the area where you live when selecting an insurance policy for collision repair. If you live in an area with high traffic, large highways or frequent accidents, it makes sense to assume a higher risk and choose all-inclusive insurance.

4. Compare the monthly or yearly payment price against the value of your car. If you have an old car or one that does not look or work perfectly, paying for total coverage may be a waste of time. On the other hand, if your car is new or expensive, even the smallest collision accident will result in a large bill.

5. Find out what the laws are in your state. Some areas give you total freedom when it comes to choosing collision insurance, while others have rules that you need to follow. Most cities require some type of insurance but put total-coverage collision insurance under the optional category.

Tips & Warnings

• Some collision repair insurance policies include a lot of extras that you may not need and that may drive the premium noticeably higher. These may include things like lodging (in case you have an accident while away from your city), towing and even long-distance phone calls. Review your policy carefully and ask for things you don't need to be removed.
• Ask for any modifications to be put in writing and signed by both parties. Oral agreements are hard to prove when disputes arise.