Did you ever accept that you were the reason for an accident? Well, you will definitely say a big “NO” against this question. We, generally, claim all the time after every accident that the other party was at fault. It is not true all the time, but sometimes, we can be innocent. However, if you will accept that you are at fault in the current accident, you can claim collision coverage if you have bought it.

Mostly, the people around us think that they are the best driver on earth and can prove it by giving you numerous examples of their life. However, even these people can make mistakes on the roads. No one can rule the accident out of their lives and there is always a chance of the accident for all those who come out. In these situations, collision coverage comes in handy and provides you the total repair costs to compensate your losses.

You must understand the fact that collision coverage is available to you only if you are at fault. If you think that the other party has made a mistake, you file a claim against them and their insurance will help you cover and repair your vehicle. If you think that the insurance company of the other party is slower than your expectations, you can ask collision coverage from the insurer and wait for the liability collision from the other side. Once the process completes, they will reimburse you.

Collision coverage is an optional coverage. It becomes necessary normally when you have a leased car. To avail this coverage, you need to discuss it with some of the general auto insurance companies around you and they will deal you according to your requirement and demand.

Which accidents come under collision car insurance?

As described earlier, this coverage helps you accept your fault and get the repairs cost. For example, if you have an accident with another vehicle or you have collided with a tree, pole or any other such object, you will get the coverage. However, if a pole or tree falls on your vehicle, this coverage will not protect you and you will need comprehensive coverage in that particular scenario.

Collision coverage does not cover you if your car has been affected due to natural disaster, collision with the animal, accidental fire, vandalism, theft, broken glass, riots or any other such kind of activity. For getting maximum information about these accidents, you can coordinate with your insurer, who will tell you about all inclusions and exclusions related to collision car insurance.

In which situations, you need collision insurance?

You need to consider numerous factors before deciding to buy this policy. We will discuss all of them briefly in the following section:

• You need to determine the car value before buying collision insurance. It becomes important if you have a new car. In the case of an accident, through this policy, you can fix all the damages. If you own an older car, this option is not suitable because the value will be calculated on actual car price and you will not get the benefits, which you expect.
• The determination of deductible is another major factor. If your repair costs are less than the deductible, this policy will not help you either.
• For the extra cautious people, this option is wonderful. However, it is more suitable for those who drive more because they are at a higher risk.
• The expenses in the form of the premium cost for collision coverage are feasible for highly paid people. Buying the general car insurance always affects the low-salaried people, but the decision of buying collision coverage for them does not suit them.

How does collision car insurance work?

The general car insurance companies calculate collision coverage through actual cash value technique. Let’s explain it more for you!

• If you have insured through collision coverage and faced such situation, the value will be calculated and you will get the amount if the repair cost is less than the actual car value.
• How the companies calculate the actual cash value of your vehicle? Well, the calculations are based on the replacement costs of your vehicle and depreciation will be deducted from this amount. The companies determine the replacement cost with the help of repairing cost and if it is higher than the repair, you will be eligible to get reimbursements.
• For example, if you have bought a vehicle in 2003, the value has gone down since then. Let’s say, if you have an accident in 2018, you will get the collision coverage according to your actual car value in 2018.
• The depreciation increases at a rapid speed if the actual car value is going down speedily. In this situation, we recommend you not to buy the collision insurance.
• Collision insurance becomes more relevant if you have a new car because the actual cash value is still high and deductible does not affect you.

What is deductible?

We cannot forget deductible while discussing insurance policies and plans. It becomes more relevant in collision insurance. This is the amount that you need to pay your carrier according to the agreement. As per the signed insurance documents, the deductible is that amount that you need to pay in case of an insurance claim as a part of the repair cost. The remaining amount of the total repair will be paid by the insurance company.

According to the insurance experts, the deductible must not be very high. Following example will help you understand it with clarity. If you have a deductible amount of $500 and the damage is around 2000 dollars, the remaining amount of 1500 dollars will be given by the insurance company and you will pay only $500, which is actually a deductible amount.

What will be the premium cost?

Numerous factors are involved in calculating the premium cost. The insurer will identify all of them such as the manufacturer of the vehicle, model and the actual amount for finding out the actual premium cost, etc. Your location, age, gender, your performance on the roads and many other factors will also be considered.

All the general auto insurance companies work differently and use different algorithms to reach the final results. The best practice for you in this regard is to ask quotes from different companies and compare them. It will help you get the best company to buy collision car insurance for you.

BMW Extended Warranty – Because Luxury Comes at a Cost

So, you have finally decided to get your dream BMW car. Providing the rare blend of sophistication, state of the art technology, and luxury, the BMW brand continues to reign supreme among the top most popular luxury cars today. More than an automobile brand, the BMW represents a market of buyers who are upscale and luxury oriented. The car is nothing less than a sex symbol and generates envy and delight anywhere on the planet.

What you need to do?

When you have finally acquired the ultimate driving machine of your dreams, it’s imperative that you acquire the service that matches it. When you buy a brand new BMW, you get a factory warranty that covers maintenance and repairs for a period of 4 years or 50,000 miles. The BMW Maintenance program covers the whole roster of factory-recommended services, apart from brake pads, wiper blade inserts, and brake discs. BMW cars have a special feature known as the BMW Teleservice through which the car actually reports to BMW whenever it requires maintenance or repairs.

However, the thrill of owning this beautiful machine could quickly wear out when you get your maintenance bill or run into unexpected repairs. When you spend around thirty thousand dollars on a car, you are inviting high maintenance costs and higher repair charges. Hourly labour rates are at an all time high, and every car on the market will see a significant spike in repair costs in the year 2015.

In such a scenario, it’s very important to be careful when selecting a BMW Extended Warranty for your car. You can always opt to acquire the extended warranty directly from the dealer at the time of purchase or choose to get it later on after exploring your options before the original warranty runs out. Whatever be the case, it’s important to have a comprehensive understanding about what you’re getting into before you sign on the dotted line.

Most dealers facilitate both third party extended warranties as well as the BMW factory warranty. Although BMW alone can provide you with an extended warranty, there are quite a few third party providers who can provide you with a vehicle service contract. It really isn’t much different from how an extended warranty works as it takes care of parts, labour charges, and repair taxes.

There are providers for people with bad credit history too. In a scenario where you are unable to avail loan due to your bad credit you can seek the help from providers for BMW Car Loans for bad credit.

If you are opting for a third party extended warranty provider, you need to know who to trust. You can easily find highly reputed third party agents who are capable of sharing information that you need to know as an owner. This would include the claims history of BMW owners, reliability ratings, and of course customer reviews. The most obvious difference between a BMW factory warranty and a third party warranty insurance plan is the cost. Due to the fact that they connect the consumer directly to the source, third party warranty plans are less expensive.

The extended warranty plan offered by BMW is way too costly in comparison to the other third party plans. So, take all the time to shop around and zero in on the best deal you can get from scores of third party agencies operating in the country. Give your ultimate driving machine all the pampering it needs through a comprehensive service plan that covers all kinds of repairs and unforeseen maintenance costs. There are third party insurance providers who are ready to provide a wide array of financial services like Allianz Comprehensive Car Insurance services.

So, go ahead and conquer the roads on your brand new BMW, but before that make sure you opt for a comprehensive extended warranty insurance program that will grant you complete peace of mind.