Why is Auto Insurance Important ?

Why is Auto Insurance Important ?

Having car insurance is a legal requirement that provides financial protection in the event of your vehicle being damaged. It protects others who are riding in your vehicle at the time of the accident, as well as any other people who may have been involved. The older the company is, the more established they are, and the better service they will typically provide.

Why is Auto insurance necessary?

Having car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians.

  • You know you are protected every single time you hit the road.
  • You are protecting your automobile, one of the largest investments you make in your life.
  • Protects you from those motorists that may not have insurance of their own.
  • Not only pays for accidents and weather-related incidents, but also pays for vandalism and theft.
  • You don’t have to feel the biggest part of an accident-related lawsuit.

Insurance can also provide financial support if your car is stolen, vandalised or destroyed by fire. One of the most necessary types of insurance plans that meet the needs of most people is auto insurance. Unfortunately, it is a necessary evil, and people don’t feel that they really have to have it until they’re in an accident. Car insurance is there to protect other members of the family who may also use your vehicle. Having coverage protecting other people’s property and medical expenses is important for your own financial protection. Without it, you can be sued for the damages.

Other Important Auto Insurance Coverage?

If you want to protect your own property, then you must have to purchase physical demage coverage so you are protected against serious physical demages.

  • Collision coverage : Collision insurance coverage may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle. Collision coverage is an optional insurance rider, although ValuePenguin recommends you to include it in your policy. Collision insurance pays for repair costs to your own vehicle if it turns out you were responsible for the accident. Collision coverage will pay for repairs to your car while the insurance company attempts to prove your innocence and get their money back.
  • Comprehensive coverage : Comprehensive car insurance coverage may cover vandalism, theft, and damage from natural disasters. Comprehensive insurance can provide an extra level of coverage in the instance of an accident involving another vehicle.  A common misunderstanding about comprehensive insurance is that it covers everything. It does not. It only covers automobile damages from non-collision accidents and will not cover personal items, such as your wallet or car radio, if they are stolen.

Know the Basics :

It’s an important part that you review your insurance policy and make sure that you understand all the points of insurance policy, and under which circumstances, insurance policy will protect you. There are different policies for different types of car insurance. It may depend upon your age, your car, your financial income etc. These things should be considered carefully because you never know when one accident may be the event that causes you to lose many of your assets in order to satisfy the cost of a lawsuit settlement.

Factors that determine the amount of your insurance premium :

  • Age
  • Sex
  • Occupation
  • Driving history
  • Distance you drive
  • Car type

However, if you are driving your car and someone hits you then you may not be responsible for paying your deductible; it may be the responsibility of the other driver’s insurance company.