Reasons Why You Need Car Insurance

Car insurance is very critical. Not only does it protect your car in the event of an accident, but it also protects you from financial ruin and legal consequences. Every country has laws that state that you are liable for any damage in a car accident that you cause.

Paying for something regularly, yet you actually don’t use it regularly, or may never use it if you are lucky, may seem like a money-making scam for insurance companies. But the truth is- it is a significant investment that you have to make. You should have auto insurance so that you can pay for the damages you are responsible for in case of an accident. If you get into an accident and you don’t have one, you go against the law, and you risk being jailed and get affected financially. 

Here are various types of car insurance that you can choose from:

  • Third-party: this is the minimum coverage required by the law. It covers injuries to other people and damage to other properties.
  • Third-party, fire, and theft: this one covers the cost of repairs and replacement if your car is damaged by fire or stolen. 
  • Comprehensive: it is the most expensive and advanced form of cover. It protects against damage to your car and other people. 

Here are some of the reasons why you should have car insurance


  • To help protect your finances


If you cause an accident, you will be held liable for costs associated with it. These costs may include the injured person’s medical expenses, lost income, and legal fees. Liability coverage can help you pay for all these costs. If you don’t have car insurance, you will be forced to pay these costs from your pocket, and this can be financially devastating. 


  • To protect your vehicle


Even if your car is in perfect condition, you may still want to have comprehensive and collision coverage in your car insurance policy. Your car might get damaged in a hailstone or any other natural calamity, and so it requires repairs or replacement. If you need to repair or replace any part of your car, you can check out KSeriesParts

Comprehensive cover or collision cover may help pay for repairs or replacements if the car is stolen or damaged by something except collisions, such as fire or falling objects. You may also hit a mailbox accidentally and damage your car’s front bumper. If you have collision coverage, it may help to repair your car. Without these two covers, you will use money from your pocket to fix your car.


  • To protect yourself and others


Having the appropriate auto insurance can help to protect you, your family members, your passengers, and other motorists. If, in any case, an accident occurs, you want to ensure that you have the right coverage to take care of bodily injury and property costs that may arise. To ensure that you protect yourself and those of your loved one, make sure that you have car insurance.


  • It saves time and hassle


The disagreement that arises after a car accident can be really time-consuming and overwhelming. With the right coverage, you can avoid any kind of negotiation with other drivers and property owners involved in the accident. With the right coverage, you don’t have to worry about the costs of repairing or replacing the car.

Good car insurance can help take away all these worries. An excellent policy may help with vehicle towing, repairs, and replacements and cover the costs of damages to other motorists. The moment you make a claim, the insurance company will handle the process and be there for you the entire process. 


  • To protect your auto lender


In case you have taken a loan on your car, your lender will want to be sure that you have adequate auto insurance because the loan is secured by your car. If anything happens and damages the car, it would reduce its value. That would weaken the auto lender’s collateral. 

A lender is mostly interested in knowing that you have comprehensive coverage and collision coverage as part of your car insurance policy. Comprehensive coverage covers non-automotive events, like vandalism, theft, or natural destruction. Collision, on the other hand, covers damages related to accidents. These two types of coverage protect the physical value of the car; that’s why lenders require them.


  • Compensates family after the death


One of the worst outcomes of an accident is death. The family’s breadwinner may pass away in the accident. If such happens, the car insurance compensates the family even after the member’s death. They say that nothing can equal to life, but a little compensation is better than nothing at all. So if a family gets compensated after death, they can use the money to survive.


  • It is a law requirement


Almost all countries require drivers to have car insurance or face criminal charges.  They must be insured against the driver’s liability to other people; if an error occurs on the driver’s part causing an injury to another party or destruction of their property, then the driver is held accountable and should pay the cost for making it right. Repeated offences may lead to loss of the driving license and in worse cases, a jail sentence.  


  • Supplements your health insurance


Auto insurance can help you pay for medical expenses that health one may not cover. A great insurance policy can help cover expenses like dental work and medical treatments required because of an auto accident.


  • Peace of mind


Everybody makes mistakes. But sometimes, a mistake from another motorist can become your problem. Having the right type of auto insurance can make you feel confident that you are protected if in case, an uninsured or underinsured motorist hits you.

Final thoughts

Car insurance is something that every motorist should have because you don’t know what the future holds for you. Driving a car without insurance is not only unlawful, but it can have a significant impact on your life should anything terrible happened. That’s why before you hit the road, make sure that you have car insurance.

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