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Car Insurance in California: Collision Coverage

Statistics indicate that the motor vehicle department in the state of California is the largest in the whole of North America, and by the year 2009, this department had issued over twenty six million driving licenses and the year 2010 alone witnessed the registration of 1.17 million new cars.

Therefore, car insurance in California is a booming business, and with such a huge population and so many vehicles, collision and accidents are bound to occur. The state only requires a driver to have a minimum liability car insurance in California, but this only covers a third party that is involved in a collision, and not the vehicle itself which may be damaged in the accident.

For this purpose, a car owner needs to have collision car insurance in California that covers any damages that are inflicted on your vehicle in the case of an accident where it hits other vehicles or objects. A collision cover also covers damages on your vehicle in the case that it accidentally rolls over while you are driving.

In collision coverage, the policyholder usually chooses a deductible amount, which is the amount that they will be able to cover for themselves in case of an accident. The insurance company will then pay for the value of the vehicle at the time minus the deductible amount. The more the deductible amount, the lower your premiums will be and the lower the deductible amount, the more you will have to pay in terms of insurance premiums.

The state of California does not mandate drivers to have a collision insurance coverage, but some lending companies, which offer individuals money to purchase a car, may require you to have this insurance cover. California car insurance companies that offer collision coverage will usually pay for the damages regardless of who is responsible for the accident.

It is important to consider the pros and cons of such coverage before writing it off, as it may help you in the case of an accident. Normally, comprehensive insurance coverage does not include collision as it only deals with other causes of damage, and liability car insurance in California will not include collision either. The only cover that has collision is a full coverage, which is usually inclusive of comprehensive, and collision insurance covers.

If your vehicle is of a high value, then this coverage is definitely one that you should consider. However, if your vehicle is old and worn out, you may decide not to pay for this coverage altogether as the amount you will paid in case of an accident will equal the value of the car, and after calculation, this may not be worth the amount you paid out in premiums.

Therefore, before taking collision car insurance in California, it is important to calculate the value of your car as this will determine whether the cost is worth it. It is also important to calculate your deductibles properly in order to determine how much you will pay in case of an accident as this will determine the amount of monthly premiums that you will pay to the California car insurance company.