Why Car Insurance Is A Necessity For Every Driver

Owning a shiny car is fun, and you probably cannot wait to take it for a spin. However, before anything, you will need to purchase insurance for the vehicle before trying any daredevil tricks, as accidents are possible. For any driver, safety is essential, and when you have auto insurance, you have some extra peace of mind, so if an accident occurs, your insurance will mitigate the cost. Although for some first-time car owners, making payments for auto insurance may seem unnecessary, auto insurance is essential and has immense benefits.

Why you need car insurance

Image Credit

Making payments for car insurance is not to make the insurance company rich. It is a way to secure financial protection in the event of an accident. Perhaps you have never been involved in an accident, but if you watch the news, you will often come across several reports of auto accidents, some of which are fatal. According to research, you will be involved in at least one accident during your lifetime. Also, in a statement released by the Center for Disease Control, over 32,000 people die in motor accidents each year, and about two million have varying degrees of injuries. If you are involved in an accident, and you have deemed the cause of it, you may have to bear the entire financial cost of repairs to property and medical aid. You also risk facing a judge and potentially getting a fine or face jail time if you don’t have insurance cover.

Basic requirements for auto insurance

In most states, the minimum requirements for auto insurance are personal liability and property damage (PLPD). With this basic insurance cover, you will be entitled to catering for only part of the cost of the damage that you caused if you find yourself in an at-fault accident. However, PLPD will not cover damages to your vehicle.

Benefits of auto insurance

There are different types of auto insurance, and whether you choose basic coverage like the PLPD or go for comprehensive coverage, you are guaranteed to mitigate your expenses. Some of the benefits of auto insurance include protection against losses such as pain, injuries, suffering to others, and property damage depending on the state’s laws. It will also cover your medical costs, even basic insurance cover such as the PLPD. Depending on the type of car insurance you have, your insurers can cover your vehicle repairs, but every kind of insurance coverage has its terms and conditions.

Comprehensive coverage

This type of insurance does not cover collisions. It instead covers everything else, such as theft, fire, vandalism, and other forms of damage. However, you cannot have collision coverage without comprehensive coverage.

Collision coverage

This type of insurance ensures that your vehicle is covered concerning accidents or collisions. It does not matter whether you were at fault or whether your opponent will be receiving aggravated DUI charges. Once you have this coverage, you will not pay the total cost of the repairs.

What auto insurance does not cover

Image Credit

Mechanical repairs are not covered under auto insurance unless it is a direct result of a collision, fire, theft, vandalism, or other causes covered under auto insurance. Your regular maintenance or wear and tear fixes are not covered under insurance. Auto insurance is meant to cater to sudden incidents that lead to accidents.