No matter what type of car you drive or how responsible of a driver you are, an accident can still occur at any time. Depending on your personal needs, it may be beneficial to purchase more than just a general liability policy for your vehicle. Here are answers to a few questions that may help determine if you need additional collision coverage.
Is Your Car Leased, Financed, or Paid Off?
While the law does not require you to carry collision coverage, any bank or leasing agency will. This is because they still technically own the car and they want to protect their investment. If you don’t purchase collision coverage, many leasing agencies or banks will purchase the coverage themselves and charge you for it. This will usually cost more than if you independently seek out your own cheap car insurance in San Diego.
If you own a car outright, you still won’t be required to carry collision coverage by the law or any third party. However, this doesn’t mean you should turn down this coverage. An accident in a car without collision insurance could result in repairs you can’t afford. It may be a good idea to get collision coverage with a relatively high deductible to save on monthly costs.
Do You Have an Expensive Car?
The insurance experts at American Tri-Star in San Diego recommend buying collision insurance on valuable cars. The insurance may be more expensive than liability, but it will still only be a fraction of the cost of repairing or replacing the vehicle on your own. Collision insurance is vital if the car is an investment. If you have put a large amount of money into a classic automobile and you can’t afford repairs after an accident, your entire investment could be lost.
Do You Have an Inexpensive Car?
If your car is worth very little, it may not be a sound financial decision to purchase collision coverage for it. For example, a car worth only $1500 wouldn’t make sense to insure if the cost of your annual collision insurance was over $1500. This is especially true if you put very few miles on the car. This reduces the likelihood of an accident, which reduces the need for collision coverage.
There are many factors to take into consideration when purchasing collision coverage or any other additional insurance for your vehicle, and cost is not the least of those factors. For affordable San Diego car insurance quotes, contact Tri-Star Insurance today at 619-272-2100. One of our friendly representatives would be happy to assist you.