Car insurance is a contract between car owners and insurance carriers. In the event of an accident caused by a covered peril, policyholders get compensation. Car owners are required to pay premiums to get protection. Insurers consider several factors when calculating the premiums payable for policies.
Here’s why you need car insurance:
1. You’ll Get Compensation for a Damaged Car
If your vehicle is involved in an accident, you’ll start thinking about how to get repairs and who’s going to cater to the cost. Depending on the policy you have, auto insurance can pay for the repair costs. If the other parties in an accident are negligent, they may be required to pay for the damages.
For example, the amounts may vary depending on a person’s age, gender, driving habits, among other factors. The pricing also varies depending on the type of policy you need. You can contact an insurance firm to get car insurance quotes. Basic personal car insurance is mandatory in most jurisdictions.
In no-fault states, if you’re involved in an accident, your policy will pay for some or all the repair costs for your car. The amounts payable for the damages may also vary from one state to another. Consult an insurance expert in your area to help you understand the applicable laws in your area.
2. Car Insurance Offers Personal Accident Cover Benefits
The policies have personal accident coverage, which offers compensation if you or your family members suffer permanent injuries or dies after an accident. In the event of the accidental death of policyholders, beneficiaries receive a lump sum, which includes funeral cover.
If a policyholder experiences permanent total disability after an auto accident, they’re entitled to receive benefits. Also, it has a provision for temporary total disability, which pays weekly benefits for a specified period. Usually, the payments are made for a maximum of 104 weeks. If you experience injuries and incur some costs when seeking treatment, the policy will offer compensation for the expenses.
3. Protection Against Third Party Liability
When shopping for auto insurance, you’ll find third party insurance cover. The policy offers protection against different types of liabilities, financial losses, or other expenses third parties may incur after the occurrence of an accident. Usually, it’s a part of the main car insurance policies.
Although the insured parties aren’t the direct beneficiaries, third-party coverage is important. With car insurance, you may not need to worry about paying for the medical bills, cars, and other properties belonging to third parties.
4. Risk of Car Accidents
Whenever you get into a car, whether as the driver or passenger, there’s a risk of getting involved in an accident. Another driver may hit your vehicle from behind, they may be using their phones while driving, or driving recklessly. Such risks are always there daily on all roads.
However, that doesn’t necessarily mean you’ll be involved in accidents daily or monthly. Accidents occur daily in any part of the world. According to statistics, over 2 million people in the country suffer injuries annually due to auto accidents.
5. It Offers Peace of Mind
Liability auto coverage is mandatory in most jurisdictions. It’s a wise investment for all car owners as it gives peace of mind when one is involved in auto accidents. As an insured party, the policy protects you against damages to other people’s cars and the bodily injuries they may suffer. The benefits of the policy aim to reimburse third parties.
Some people may overlook the benefits that come with car insurance policies. Such individuals fail to realize that they may end up spending large sums of money if they’re at fault during a car accident.
6. You Can Avoid Lawsuits With Car Insurance
Nobody would like to be sued. Would you? One of the best ways of avoiding lawsuits is purchasing auto insurance. Ensure you have adequate coverage. If your coverage is not enough, you can simply contact your insurance agent or company.
There’s no need to take the gamble and risk being sued for lengthy lawsuits. If that happens, you’ll end up spending a substantial amount of money. Consider increasing your auto liability coverage to protect yourself from court battles.
7. Auto Insurance Saves You Money
In the event of accidents, you’ll pay less for liabilities and losses you may incur. To get car insurance coverage, you’ll only be required to pay a small amount of money, premiums. If an accident results in expensive damages, your policy will offer compensation to cater to the repairs.
According to statistics, the average cost of auto insurance in the U.S. is about $935.80. If you consider the amount of money needed for repairs after accidents, it’s clear your premiums are much less than the benefits.
Finally, now you understand why having car insurance is important. Note that there’re several types of car insurance policies, and each of them has unique benefits. Ensure that you only choose reputable insurance firms when shopping for auto insurance.