Cars have become a necessary part of our lives. It’s not only that they’re a big financial investment, but they are a necessity as well. Unlike spending thousands of dollars on something that might sit on a coffee table, a car is used daily for commuting, trips, etc. Being so important in our daily lives and a big investment of money, the two reasons are enough to make sure cars are properly insured.
But to understand the importance of insuring your vehicle needs more elaboration. If you haven’t got a proper auto insurance policy for your car, then this article will convince you to get one. Let’s get started.
Prevent Repair Costs
Car accidents are dangerous, but the danger often overshadows the high cost of a car accident. The people who have had the fortune of never taking their car to a mechanic for repairs will be shocked to know how expensive even small repairs can be.
An average American spends almost $2,000 on car repairs only, and this is for minor repairs. An accident will brutally damage your car, and the cost of fixing that could go as high as $10,000. Worst case scenario? Getting your car totaled and selling it at the cost of scraps.
Collision coverage is the auto insurance policy that covers the cost of repairs needed after a car accident, and it can save you thousands of dollars. This is what makes collision coverage the most popular optional auto insurance policy.
Collision coverage can be a little expensive, so make sure that you compare all the different companies based on your location. For example, if you are a resident of Texas, then look for the most affordable Texas car insurance companies and select the best one based on your needs.
Prevent Accidental Liability
Imagine driving at the speed of 40 mph and you get distracted for a second. The next thing you know you crashed into another car, causing both injury and damage to the other driver and yourself. Who is liable to pay for the treatments costs and car repairs of the other driver? You, since you are accountable and responsible for the accident.
The problem is that the combined cost of medical treatments and car repairs can easily climb by hundreds of thousands of dollars. And legally you are mandated to pay the price. Not to forget the money needed for your medical treatments and car repairs.
To avoid a financial crisis after you’ve been in a traumatizing accident, you need to get liability coverage. Liability coverage can only be claimed by the other driver in an accident that’s your fault. It can be claimed by the other person for both medical expenses and property repairs.
Liability coverage is so important and necessary that it is mandatory to have one in 48 states legally drive a vehicle. Virginia and New Hampshire are the only exceptions. So get liability coverage because if you don’t, financial trouble is not the only thing coming your way.
Avoid Legal Actions
Driving without liability coverage will get you in legal trouble. You can get tickets that could go as high as $5,000. And this would be just the tip of the iceberg. If you get in a car accident uninsured and the accident is your fault, you’ll be in a mess.
Not only are you liable to pay for the treatment and repairs of the other driver, but you’ll also have to pay for your medical treatment and car repairs. And that’s not all. Driving uninsured will get you sued, so adding the attorney fees, and other charges, you might end up paying hundreds of thousands of dollars. Some states take this felony so seriously that you might end up in prison.
All of this can be avoided if you get liability coverage with sufficient coverage limits. So compare different car insurance companies, select the best policy at the best rates and you are safe to drive your car, both financially and legally.
Pay for Medical Treatments and Lost Wages
Car accidents are traumatizing, but paying for the medical treatments for the accident might land you back at the hospital. On average, the cost of an ambulance ride is around $1,000. And the average cost of hospitalization? That could reach almost $60,000. That’s a lot of money, and you do not want to spend the money from your pocket unless you’re a millionaire.
A personal injury protection plan is perfect for protecting your bank account from such losses. This policy covers the cost of medical treatments needed after a car accident. Not just that, but personal injury protection also covers lost wages.
12 states have made it mandatory to have a personal injury protection plan, but if you live in any other state, getting this policy is worth it, considering how much money it can save you. Many health insurance policies combine the coverage of personal injury protection. When getting any health insurance policy, make sure car accidents are included along with lost wages compensation.
Avoid Theft Losses
Car theft might seem like a rare scenario for you, but you never know how close your car is to getting stolen. It is better to be covered against car theft if you live in an area where theft rates are high, and your car stays out in the open.
Comprehensive coverage will reimburse you in case someone steals your car, or damages it while doing so. The policy will pay you the actual cash value of the car if it gets stolen and the cops cannot find it after 72 hours. Just make sure that you report the theft to the cops and obtain a police copy of the theft.
These were the reasons why you should have car insurance. The cost of getting car insurance might bother some people but it gives you the freedom to drive without worrying and keeping your car insured.