Why Do We Need Car Insurance?
Car insurance policy is one of the most important documents that every car owner must have. People feel like they don’t really need one until they are involved in an accident.
A car insurance, just like any other insurance policy, is used to protect the policy holder and cover any financial losses that may occur while operating a motor vehicle. The premiums might be expensive, and it can be tempting not to get one, but in most cases, it is not feasible or possible.
Most automobile drivers are required to have at least liability coverage. Be sure to have the minimum amount of liability coverage that is required by law. Without any liability coverage, a driver is not allowed to have a license.
One of the reasons why drivers are required to have liability coverage is because the policy compensates another party should there be an accident where you were found to be at fault. During an at fault situation, the driver will be responsible for all the damages incurred. And if the driver doesn’t have any liability coverage then they need to pay for the full cost of the damages. Having car insurance with liability coverage prevents you from going through financial ruin because of an accident.
Collision and comprehensive often bundled together because they refer to accidents where the driver didn’t cause the accident. Some examples of collisions include hitting a pothole or running into debris while on the road. Comprehensive damages are acts of God such as severe thunderstorm that led to a branch to fall on the vehicle, or lightning striking the car. Collision and comprehensive car insurance coverage pays or reimburses the driver for the auto repairs or if the damage was not caused by the driver.
Just imagine a world without car insurance. People who are at fault are required to pay for the injuries of the victims as well as the damages caused by the accident. Keep in mind that the person at fault must pay for the vehicle repairs, medical bills and other expenses paid by the insurance of the driver at fault. Without a car insurance, the person at fault needs to pay the expenses out of his pocket. A lot of people have lost their assets, or even gone bankrupt because they didn’t have any car insurance cover.
When getting a car insurance, it is important that you review the policy to ensure that you understand all the details, especially the fine lines. You should know what is covered by the policy and how much your premiums are before you seal the deal on a car insurance. You should carefully consider the coverage scope of the insurance policy to make sure that you are properly covered by it.