The first advice that you get after purchasing a car is to get an insurance cover. But have you ever stopped for a second to ask yourself why having car insurance coverage is essential? No one likes to spend money without a guaranteed ROI. That`s why many people – especially new drivers and those who have never filed a claim – feel frustrated when they have to pay auto insurance. But the reality is that having an insurance cover is critical – one only needs to understand the “why” and “how” to alleviate their concerns.
Here are some reasons to insure your car.
It is a requirement
Car insurance is mandatory in the United States. In fact, auto insurance laws are set and applied at the state level, and 49 states in the country need all drivers to carry an active auto insurance cover. So, not having one means violating the laws and facing potential consequences.
Every state law has a minimum car insurance policy limits that drivers need to buy. This is the amount the insurance company will pay toward a covered claim.
It is always recommended to pay more than your state’s minimum limits so that you don’t end up paying from your pocket in case you cause an accident that hurts another driver or person and their medical costs exceed your policy limits.
For financial protection
Accidents are unforeseeable and can happen at any time. And if you are like many people, you do not have money lying around to cater to costs that arise from an accident.
If you cause an accident, you will not only need to pay the victim; you will also need to take care of your own losses. Depending on the nature of the accident, we could be talking about a lot of money.
Costs associated with auto wreck include victim’s medical expenses, lost wages, pain and suffering as well as legal fees. A car insurance policy can help take care of these costs so you won’t need to pay them out of your pocket.
For vehicle protection
In addition to accidents, a car insurance cover can protect your vehicle against vandalism, theft, fire, rats, deer, and storm damage, among other things.
It can also protect your car against accidents with light posts, mailboxes, trees, automobiles, and any other stationary object. Without insurance to back you up, you will have to fix any arising damage with your own money, which can be costly. In the event you lose your car, you will have no option but to get a new one.
For passenger protection
Other than you or the other driver, it is also possible for other people, including the passengers and road users to be hurt following an accident.
The resulting personal injury may cost a fortune in medical expenses as well as lost wages. With coverage in place, you may not need to worry about the injured persons’ medical bills, surgery, medication, and hospital visits.
For lease or loan purposes
If you are leasing your car or financing it, your lender may need you to buy a comprehensive and collision coverage for safety reasons, since the lending or leasing agent is the vehicle’s lienholder while you make payments, the car insurance policy may be instrumental in safeguarding their investment.
Both these covers may help to fix or replace the care if it’s damaged in the covered loss.
Avoid the tedious process
The fallout from a crash can be tedious and time-consuming. With the right insurance policy, you can avoid negotiating with property owners and drivers involved in the wreck and managing the expenses of fixing or replacing your car.
A good insurer can take care of these headaches. They can also help with automobile towing, repairs, replacements, and handling the costs of damages to injured persons.
Peace of mind
No one is perfect. As humans, we are bound to make mistakes. But in some cases, another’s carelessness or negligence can land you in problems. With adequate vehicle cover, you can rest easy knowing you are protected if an underinsured or uninsured driver hits you.