Why Do I Need Car Insurance?
Car insurance is a legal requirement in many places. Therefore, drivers are mandated to have car insurance to drive legally on the road. But, many people only purchase car insurance policies because it’s a requirement. However, it offers other benefits that help protect your car and financial liability.
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Remember that accidents can happen anytime, which is why I always have my digital nomad insurance, sorted in advance, even if one is a careful driver. But when you’re involved in one and don’t have insurance, you’ll need to pay for damages and injuries out of pocket, which is very expensive. Continue reading to learn about the importance of car insurance, among other things.
Why Buy Car Insurance?
#1. It’s Required by Law
You need car insurance because you must have it, at least in most places. If you’re caught driving without insurance, you may be fined and even jailed. Please note that the law is not lenient to uninsured drivers. Your licence may even be suspended until you prove that you have insurance coverage. And buying insurance with a suspended licence is very pricey.
#2. Saves You Money
Sure, buying car insurance is not cheap. However, it’s a worthwhile investment as it saves you money in the long run. Auto insurance can save you on huge investments later. So you can’t compare the money you pay now to the costly expenses you might encounter in the future. In case of an accident, having bodily injury liability, collision insurance, and comprehensive insurance coverages can help cater to the cost of claims.
#3. For Your Peace of Mind
Even if you are not at fault, sometimes you may be responsible for another driver’s mistake. But with auto insurance, you’ll be confident that the expenses will be catered for when hit by another driver, whether they are insured or not.
#4. Saves You Time
Solving car accidents takes a lot of time, and it’s tedious as it involves a lot of back and forth. But when you are insured, you can avoid tiring negotiations with other drivers and property owners involved in the accident. Your insurer will cater to the repairing and replacement costs which saves you the stress of dealing with all these yourself. You only need to file a claim, and if it’s justifiable, your insurance company takes over the process.
#5. Protects You and Other People
Auto insurance protects the driver, family members, and other people on the road. If you get into an accident, having the right insurance will pay the needed bodily injury and property costs.
Car insurance is also an excellent way to supplement your health insurance. Most health policies have a limit to how much coverage they can provide. Your car insurance can chip in if your expenses go past the set level. It may help cover dental work and other medical treatments needed after getting into an accident.
What Type of Car Insurance Do You Need?
Well, that depends on you. Usually, most places require all drivers to have liability coverage that covers the replacement or repair cost of the damage from an accident where you were at fault. It also caters to the medical bills of third-party, among other expenses.
Some people also buy collision and comprehensive coverages, but they are often not mandatory. Collision coverages cater to the damages to your car if an accident occurs, regardless of who is at fault. Compressive coverage pays for damages caused by non-collision accidents like theft, vandalism, natural disasters, etc. If you have an old car with a low market value, buying these policies is not advisable.
Other insurance policies you can buy are personal injury protection and uninsured or underinsured motorists. What’s important when buying coverage is to consider your needs, car value and age, and budget.
Remember, never travel without travel insurance! And never overpay for travel insurance!
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