Before we go deep into cars let’s first know what car insurance is in general insurance is a contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
The company pools clients risks to make payments more affordable for the insured insurance policies are used to hedge against the risk of financial losses both big and small that may result from damage to the insured or her property or from liability for damage or in now let’s go deep into why we need car insurance.
Having car insurance is required by law in most states, if you are at fault in a car accident the auto liability coverage required on your car insurance policy helps pay for covered losses such as the other party’s medical bills and damage to their vehicle or other property that.
Results from the accident it also helps pay your legal fees if you’re taken to court vehicle insurance may additionally offer financial protection against theft of the vehicle and against damage to the vehicle sustained from events other than traffic collisions such as keying weather or natural disasters and damage sustained by colliding with stationary objects.
The specific terms of vehicle ensure, here are five reasons why you need car insurance:
1. Insurance helps you protect yourself even though liability coverage is a legal requirement many people drive without it uninsured motorist coverage may help pay for your medical bills if you’re hit by a driver without insurance this coverage is required in some states and optional in others, it can’t stop something happening but if something unexpected does happen that is covered by your policy it means you won’t have to pay the full cost of a loss having the proper car insurance coverage in place can go beyond fulfilling a legal requirement a car insurance policy may help protect your vehicle your wallet and even offer.
2. Insurance helps protect your passengers medical payments coverage and personal injury protection may help pay for your medical bills if you’re injured in an accident it also may help cover your passengers expenses due to the accident this coverage may help pay for hospital, visits doctor bills and surgery.
3. Car insurance can help protect you from the cost of repairs even if you own your vehicle outright, you may want to have collision coverage and comprehensive coverage on your car. Insurance policy while mandatory liability coverage helps pay for damage to another driver’s vehicle it’s important to have coverage for your own vehicle for example what if your car is damaged in a hail storm comprehensive coverage may help pay for repairs or replacement if your car is stolen or damaged by something other than a collision such as falling objects or fire or say you accidentally hit a mailbox and damaged your car’s front bumper, collision coverage may help pay to repair your car if you hit another object or vehicle regardless of fault without comprehensive .
4. Your leasing agent or your lender merrick wire auto insurance if you’re financing or leasing your vehicle your lender may require you to purchase collision coverage and comprehensive coverage since the lender releasing agent is the lien holder of your vehicle while you’re making payments these two coverages may help protect their investment comprehensive or collision coverage may help pay to repair or replace, the vehicle if it’s damaged in a covered loss if you have gap insurance on your auto policy this coverage helps pay off your car loan if the vehicle is totaled or stolen and you owe more than its depreciated value gap insurance is optional and it typically works with collision number five car insurance offers financial protection if you cause a car accident you may be held responsible for costs associated with it these may include legal fees the injured person’s medical expenses or their lost income if their injuries leave them unable to work liability coverage may help pay for these costs without liability coverage or adequate liability limits you would likely have to pay now you may ask is it okay to drive without insurance no but there are certain circumstances where your car doesn’t need to be insured these include number one when you’re taking your car off the road for a while and want to stop the insurance to save money.