It is the nature of insurance policies to scale its coverage according to how probable is the unfortunate event to happen - the more probable the event, the more the owner would need to pay more. So in the case of cars, the least probable thing that could happen could include colliding with an elk. Depending on your neighborhood, it also isn`t probable for your vehicle to be vandalized. On the other hand, in the course of your car usage, it is most probable that you could collide with another car or hit a lamp post the very inclusions of collision auto insurance.

By definition, collision auto insurance is an insurance coverage that provides protection for the probable occurrence of collision with another vehicle or impact with an object. Collision coverage is a premium paid for protecting your vehicle against such occurrence. Liability is not an issue because collision auto insurance covers the repairs or the replacement of the vehicle whether the owner is at fault or not. Simply said, under collision coverage, the policy owner will be compensated, no questions asked.

As a general guideline, one could vary the proportion of the collision auto insurance coverage by changing the deductible one could opt for a lower premium in exchange for a higher deductible. This is a personal choice however, and a decision made in consideration of long-term benefits. If one is more prone to an accident (i.e. a muddy driver record) then it makes sense to reduce the deductible. On the other hand, if safe driving is one`s rule then a higher deductible could be chosen.

Given all these, why isn`t collision auto insurance mandatory? It seems a very good investment and one that has lots of benefits. One explanation for this is not all vehicle owners might want to have collision coverage or have the facility to repair their vehicles after an unfortunate accident. If the car too old (which therefore makes it of lower value) then it wouldn`t makes sense to pay such a high premium for something that might not hold out for long. It may be cheaper and more convenient not to rely on collision coverage in this case. Collision auto insurance is suggested more for newer cars or those vehicles that the policy owners haven`t finished paying off, a boon for making sure that a pricey vehicle is well-protected.