Car insurance is a legal requirement, and that gives the right level of cover and provides financial protection to your vehicle in any case of damage. Car insurance is an important thing which usually the drivers ignore. The people who have been into driving for a more extended period knows the importance of car insurance, but the new drivers have been ignoring it. They consider it more of a pain than a benefit.
Every state requires a certain amount of insurance which your vehicle must possess. The place where you reside decides the minimum amount of coverage you must carry. In many states, if you are found without proper insurance documents, then your vehicle can be seized, or a fine can be imposed.
Car insurance is a must if you own any vehicle. Some of the essential reasons why you need car insurance are mentioned below:
- Life is uncertain. Mishaps and accidents happen now and then. There is no certainty in the fact that you may survive any mishap or accident. Nowadays people get involved in a lot of rash driving which has increased the ratio of vehicular accidents. Both life and property are at equal risk. It is essential to take measures for protecting both. In such cases, car insurance comes to the rescue. It helps you protect your car in any case of damage. If you get caught in an accident, and you have car insurance then you can get financial cover for your vehicle, the drivers, passengers and even the pedestrian.
- Insurance provides complete protection to you in any case of damage or injury. Car insurance helps you get protection from injuries that you may get in any car accident. If you are insured, then you can get the financial support from the insurance companies. It will provide cover for injuries to other drivers, passengers or pedestrians, and their property.
- Car insurance also covers and protects other activities involved with your cars such as in any case of car theft or vandalism or if your car gets caught in the fire. It covers all kinds of mishaps that can happen to your vehicle.
- Car insurance also protects you from personal liabilities should you be in an accident. Car insurance is a legal requirement. Therefore, it is of utmost importance. You must have car insurance in case you get caught in any car accident. If you are in an accident and are responsible for the act, then you can be held personally accountable for all kinds of medical bills if a person gets injured in the accident and significant monetary reward if a person gets killed. You can be held responsible for a substantial financial compensation which may not be possible for you to give in case your car is not insured. This may even mean that you have to spend the rest of your life paying the reward.
- Your car insurance also helps you to get your car replaced. Depending on the type of vehicle you own, your vehicle can be repaired or replaced. This way you can save your pocket expense of replacing your car on your own. It will also help you if you hit any other vehicle in an accident. Vehicle repair can be an expensive task. According to BilForsikring, in Denmark for example, the cheapest prices start at about DKK 2000-3000 plus VAT, depending on the damage. In the UK, however, the prices are slightly cheaper, according to WhatPrice. Therefore, you can cover this with the car insurance. In case you are held responsible for the accident, then you may have to pay for the damage caused to the vehicle of the other person. This may cost you a lot of money since car repairing involves a lot of money. You may even have to pay for the replacement of the vehicle that you hit. If you don’t have car insurance, then you will have to pay this money from your pocket. Thereby, it is vital if you get car insurance.
Car insurance is critical since you get landed in any situation for which you might not be ready. Since car insurance is a necessary thing, you must invest in it carefully and wisely.