A car is a huge investment, whether new or used. And before you legally register and drive your car, you need first to purchase insurance coverage. Having insurance coverage helps protect you from legal and financial liabilities in the event of a car crash. According to recent studies, over six million accidents happen each year in the U.S. alone, and about one in every six drivers doesn’t carry any car insurance. If you’re uninsured and get into an accident, you end up paying for the damages out-of-pocket, which can drain you financially.
It’s crucial to ensure you have car insurance to cover the costs of replacing your car if it’s stolen or when you’re in an accident. Car insurance costs vary from one insurance company to another because each company has its own way of assessing risk and determining the amount you pay. If you’re looking for the best prices on car insurance, you can check online. Here are the top 10 reasons why getting car insurance is important:
Car insurance is required by the Government
Almost every state in the U.S. requires drivers to buy car insurance before getting behind the wheel. The minimum coverage limits you’re required to buy can vary greatly from state to state. A policy limit is typically the maximum amount your insurer will pay after filing a claim. If you’re driving without the state’s minimum coverage, your license could be suspended or even face hefty fines.
Apart from the state’s minimum coverage, it’s always advisable to buy additional coverage to avoid paying out of pocket if you cause an accident and the damages exceed your coverage limits. That’s why some states require drivers to purchase additional coverage on their car policies, such as personal injury protection or uninsured motorist coverage.
Helps Protect You from the Cost of Repairs
The fallout from a car crash can be expensive and time-consuming. Having a car insurance policy with comprehensive coverage and collision coverage can help protect your own car. Collision coverage can help with vehicle towing, repairs, and replacements if you get into an accident with another vehicle or hit an object like a mailbox, regardless of fault.
Unfortunately, a collision isn’t only the worst thing that could happen to your car. Your vehicle could get vandalized, stolen, or even damaged by catastrophes, requiring repairs or even a replacement. In such cases, your policy’s comprehensive coverage can help pay for replacement if your car is stolen and repair damages caused by something other than an accident, such as a hailstorm or fire. This way, you don’t have to pay out of pocket to fix your car. Once you file a car insurance claim, your insurer will handle the entire process and get your car back on the road again.
Helps You Protect Yourself and Your Passengers
While most states require a driver to carry a car insurance policy, some drivers still choose to drive without it. Getting into an accident with an uninsured driver can leave you paying for the damages sustained. If your car insurance policy includes personal injury protection and liability coverage, it can help cover your medical bills if you sustained injuries in a collision. It also covers any injuries your passengers might have sustained from the accident.
Most states require drivers to add uninsured motorist coverage on their auto insurance policies for additional protection in case an insured driver hits you. Your insurance company will pay for all your medical expenses from on-site aid, surgery, and hospital visits, saving you lots of money and trouble.
Supply Legal Protection
While your insurance company may help compensate other drivers for your negligence, some accident victims may file lawsuits against you to get as much as possible from you. If the other driver sues you in court over an accident, your car insurance can help protect you from any legal claims and the associated legal fees. This way, you get the right protection from legal claims at an affordable cost instead of hiring lawyers, which can be expensive and time-consuming.
Your Lender or Leasing Agent May Ask for Car Insurance
Your leasing agent or lender may also require you to purchase car insurance if they’re leasing or financing your car. Your car insurance policy should have additional comprehensive and collision coverage. This helps protect them from any risks while you’re still making payments. Your coverage will help pay to replace or repair the car if it’s damaged or stolen.
Car Insurance Offers Financial Protection
Another important reason you need to purchase car insurance is to help compensate other drivers for your negligence. If you get into an accident and are at fault, you will be held responsible for the damages caused. This includes the medical expenses of the injured driver and lost income if the accident leaves them permanently disabled and unable to work. Your insurance policy’s liability coverage can help pay for damages to other parties from a crash you’ve caused.
Without car insurance liability coverage, you may be obliged to pay for the damages out of your own pocket. The injured driver could also file a lawsuit against you, damaging your credit rating and even draining your finances. The best car insurance policy can help protect you from all that if you’re at fault in a car accident.
There are many compelling reasons why you need car insurance. Not only is having car insurance a legal requirement in most states, but it also gives you complete peace of mind while on the road. It helps ensure you don’t face financial hardships if you lose your car or it gets damaged in an accident or another event. It also covers damages to the other party’s vehicle and bodily injuries from an accident you’ve caused. On top of that, it pays your legal fees if someone files a lawsuit against you in court due to an accident you caused.
Compare different insurance quotes from multiple providers to ensure you get the best rate for your policy. Your policy should have adequate coverage, so you don’t pay for any costs out of your own pocket in case you get into an accident, and you’re at fault or with an uninsured driver.