By Jason Averill

The automobile insurance collision clause of your policy is the part of your insurance that will pay for your vehicle to be repaired in the event of an accident. This coverage is not mandatory in most states, but it is a very good idea to purchase it. If you do not have it and your automobile is damaged in an accident that you are responsible for you will have to pay for the repairs out of your own pocket.

The only time we recommend opting out of this coverage is if your vehicle has a relatively low cash value. For instance; if your car is worth six hundred dollars it will likely be less expensive to replace the car if it is damaged than it would be to pay for collision coverage.

Since most people would rather have minor repairs done to their vehicle rather than replace it it’s important to have adequate collision coverage. The coverage will be worth the market value of your automobile. This means if your car is worth ten thousand dollars and the estimate to repair the car is eleven thousand dollars that the insurance company will declare the automobile a total loss.

If your car is declared a total loss then your insurance company will write you a check for the worth of the car rather than pay for repairs. What is left of the car then becomes the property of the insurance company and you will need to buy a new vehicle.

It is important to notify your insurance company if you have made any modifications to your vehicle that will increase the value. If you don’t tell them about the five thousand dollar entertainment system you have installed and the car is destroyed they will not pay for it.

Hopefully you now see the benefits of purchasing enough automobile insurance collision coverage. If you don’t have it you should consider purchasing it online as the policy will be so much cheaper that you will get the coverage for less than you are likely paying for your current insurance policy.

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