Car Insurance No one likes to pay for car insurance. Maybe you’ve been driving for decades and didn’t need it, so why bother? Like many things in life, it is better to have it and not need it, then need it and not have it. People always know this about car insurance. In the United Kingdom, the first car insurance policy was issued in 1895, a company whose name has been reported to be lost over time. No matter where you live, this is an important principle. Why? Here are 7 reasons:
#1 – Car insurance helps pay for damages caused by “God’s work”
Insurance does not only come in handy after an accident. Hail, blizzards, fires, and more can damage your car. Extensive coverage usually calls companies “God’s work” or pays for events where you or any other driver is not at fault. This type of coverage is important if your car is stolen or vandalized. Depending on the policy, it may also cover stolen or damaged items in your car.
# 2 Protect yourself, your family and others around you
No one wants to get involved in an accident, on receipt or otherwise. A good man always wants to be around him and protect others. A good auto policy can not only protect the insured but also the insured family as a result of less tedious process and faster re-compensation. Others in your neighborhood may also benefit and you may be blocked by an additional cost from a good auto policy.
# 3 Car insurance is often required by law
In many areas, car insurance is required. There are different levels of coverage, but there is almost always a mandatory minimum. This is the case in the United States; Most states require insurance. In the European Union, anyone who registers a car must have third party liability insurance. This insurance does not cover the cost of repairing your car, but it does cover the loss or injury of property other than the driver due to an accident.
#4 To compensate you for an accident caused by someone else
As much as you may hate the idea of car insurance, the need for it can be a great comfort if you are involved in an accident caused by someone else.
In that case, you need to be compensated for the victim and the injury you suffered, as well as for any damage to your vehicle. Car insurance enables a person who has no other financial resources to compensate you for your losses.
Not everyone needed to carry car insurance, you probably had to bring a lawsuit against the offending party. Not only will your money be spent on legal fees, there is no guarantee that you will be compensated even if the court rules in your favor, even if the other party is an uninsured driver.
A court may issue a judgment in your favor, but they do not enforce the judgment.
You may be forced to wait years and years before the defendants are able to take care of their financial obligations, if they ever pay. On the other hand, if you have car insurance, you can usually be reimbursed by the other party’s insurance company within a few weeks.
# 5 Car insurance is often required by law
In many areas, car insurance is required. There are different levels of coverage, but there is almost always a mandatory minimum. This is the case in the United States; Most states require insurance. In the European Union, anyone who registers a car must have third party liability insurance. This insurance does not cover the cost of repairing your car, but it does cover the loss or injury of property other than the driver due to an accident.
# 6 Fix your car no matter who is to blame for the accident
Car repairs are expensive. A single, seemingly innocuous fender bender, could easily cost a few thousand dollars. In more serious cases, you may not be able to drive.
If you do not have car insurance and you have caused an accident, you will have to pay out of pocket for repairs.
But due to car insurance, your car will be repaired or replaced quickly.
# 7 To protect your assets
Suppose you think you have enough money that you can be “self-insured” in the event of an accident. Maybe you have at least a quarter of a million dollars and you think you don’t need car insurance.
It may be, but do you really want to lose your hard-earned savings in a car accident?
If car insurance does nothing else, it will protect your assets. This is because if you are determined to be at fault, the other party will follow your insurance company to get compensation, not you.
( Car insurance is mandatory for a reason – it protects you and others when you are in a car accident)