In most states, drivers are required to have car insurance. Insurance can save you a great deal of stress and money should you encounter an accident. If you’re not careful, driving without insurance can jeopardize your car and savings account. In this article, you’ll learn how car insurance helps cover the cost when your car is stolen or when you’re engaged in an accident.
Read on to understand how you can also purchase a non-owner policy, drive a rented car, and avoid a coverage lapse in case of an accident.
Car Insurance Offers You Financial Protection
Causing an accident can be devastating. If you’re held responsible for causing an accident, how do you pay for the costs associated with it? This is where car insurance comes in. With insurance cover, you can cover the injured person’s expenses, legal fees, and liability costs. If the injuries leave you or the injured person unable to work, the liability coverage helps to cover the costs, such that you don’t have to pay for the expenses out of your pocket.
Car Insurance is a Requirement by Law
In each state, drivers are required to buy auto liability coverage limits. A limit refers to the maximum amount of money an insurance company can chuck to cover a claim. Therefore, it’s of utmost importance to increase your limits beyond the state’s requirements. With such coverage, you can avoid covering costs if you cause a wreck and the bills exceed your auto coverage limits.
Besides the liability coverage limits, some states require drivers to pay for additional coverages such as personal injury protection and uninsured motorist coverage. The coverage helps pay for costs, medical bills, and hospital bills not covered by your insurance company. Also, the additional coverages protect you financially from irresponsible drivers.
It Saves You Repair and Replacement Costs
Having comprehension and collision coverage on your insurance policy is of utmost importance. While the liability coverage helps take care of damage to your fellow driver’s vehicle, the collision and comprehension coverage helps cover your vehicle. “If your car is wrecked in a hailstorm, the comprehension coverage helps pay for repairs”, MyChoice says.
Additionally, the comprehension coverage covers the replacement costs if your car is damaged by fire or stolen. The collision coverage helps pay for repairs such as changing a damaged bumper. Without the collision or the comprehension coverage, you’d have to get your car fixed using your own money.
Car Insurance Helps Protect Passengers
Personal injury protection and medical payments coverage pay for your medical bills if you’re involved in an accident. Additionally, the insurance cover may help pay for passenger’s expenses after an accident. The medical payments coverage may help pay for surgery, hospital visits, and doctor bills.
Auto Insurance is a Requirement by Lenders and Leasing Agents
If you’re leasing or financing your vehicle, your leasing agent may require you to buy comprehension coverage and collision coverage. While making payments, your lender or the leasing agent acts as the lienholder of your car. Therefore, these coverages help protect an investment and cover repair damages. The collision covers accident-related damages, whereas the comprehensive covers non-automotive cases such as natural destruction, vandalism, and theft.
Some auto policies incorporate gap insurance. This insurance helps pay off your vehicle’s loan if it ends up being stolen or totaled and your loan exceeds the depreciated value. The insurance is optional and works with comprehension and collision coverage. Both types of auto coverage options protect the physical value of your car. That’s why leasing agents and lenders require them.
Car Insurance Offers You a Peace of Mind
In Canada, liability coverage is a requirement. However, a plethora of drivers drive their cars without it.
Many drivers purchase liability coverage limits to fulfil the legal requirement. Having the proper auto insurance can go beyond fulfilling a requirement. An auto insurance policy can help protect your wallet, peace of mind, and your vehicle. If you’re struggling with choosing the right car insurance coverage, you can consult a local agent and seek help selecting the coverage that meets your needs.
Auto Insurance Protects Your Assets
Often, drivers opt to self-insure themselves and ignore car insurance coverages. Unfortunately, you can lose your hard-earned money if you get involved in a car accident. With insurance, the other party will sue your insurance company to get compensation. Therefore, you’ll save your hard-earned cash if you’re at fault.
By requiring that every driver has coverage, everyone is protected from the risks of driving and owning a car. If you don’t have car insurance and you’re at fault in the midst of an accident, you’d have to pay for the damages out of your pocket. With auto insurance, your car will be replaced or fixed quickly.