Why do we need car insurance? Isn’t it better we know importance of it, rather than knowing it is something we must buy? You may only see it as a burden right now, especially if you are young and paying high premiums. However, it can protect you from fines, financially ruining liability claims and pay for damages to your vehicle. Do you need to have a sizeable insurable loss to know the answer to why is auto insurance important?
Why Do I Need Car Insurance? – 10 Reasons for You
Vehicle insurance policies provide essential coverage to protect policyholders against liabilities arising from causing vehicular accidents (mandatory coverage with minimum limits) and pay for their own losses (voluntary coverage). State enforced minimum liability coverage is generally increased a few times over in a standard full coverage auto insurance policy that also has Collision and Comprehensive Covers. You will hopefully appreciate importance of car insurance better after reading following answers.
- It is Something You must Buy
You need insurance to drive in every state in the US. Each state has own minimum liability requirements and anyone who wants to own and drive a vehicle must first comply with these laws. So, driving is not an automatic right but it is a privilege only gained after complying with state laws governing driver licenses, vehicle registration and insurance.
Failing to comply will result in fines, loss of driver’s license, vehicle registration and even jail sentence, depending on where you live. You cannot continue your journey any longer if you are caught driving without insurance in many states and your car can be impounded. You’d better check penalties for driving without insurance before going down that route.
- Accidents Do Happen
According to NHTSA, over 6 million vehicular accidents happen in the US every year. And according to National Safety Council, average property loss in an accident is over $10,000. This doesn’t include injury costs that we all know can be enough to bankrupt anyone. So, how are you supposed to handle these losses on your own?
Why is car insurance important? You can buy cheap full coverage auto insurance that includes Liability, Collision, Comprehensive and Medical Payments Coverage today and pass all those risks onto an insurance company in return for manageable premium. That is why.
- Compensation for Injuries You Cause
Every time you start driving there is a chance that you may cause an accident and injure innocent people. Can you pay for those injuries bearing in mind current cost of hospital treatments? How would you feel about it if your victims were left to suffer financial consequences of your actions as well as physical injuries? Why should anyone have to pay for your mistakes?
- Legal Protection
Do you think those victims are going to just go away because you have no insurance? They will sue you for everything you got. They can sue you even you have insurance and vehicle insurance is there to defend you against lawsuits arising from injury claims and accidents. Otherwise, you will have to sell everything you have to pay for the damages and injuries you caused. Courts will order deductions from your wage until victims are fully compensated, if you don’t own anything of value. Sometimes, damages can be so large that you cannot pay them until the end of your life.
Why do you need automobile insurance? So far, we have only looked at injuries. How about damages you caused to other people’s automobiles and properties? They can easily reach to tens, even hundreds of thousands of dollars. This personal liability protection alone is enough to explain the importance of being insured. You can read further to find answers to what does liability car insurance cover.
- Auto Theft and Vandalism Protection
When you add Comprehensive coverage on top of compulsory liability coverage you are protected if your auto is stolen or vandalized. How would you feel when you realize your car is stolen and never coming back? Now how would you feel if you had no insurance to pay for it?
- Protection from Natural Disasters
Natural disasters like hurricanes, floods, storms, landslides and snowstorms are not uncommon in the United States. When the hell is breaking out outside last thing you would want to worry is your auto and you don’t need to worry if it is insured.
- Life Can Be Difficult If You Lose your Car
Most people are dependent on private automobiles to get to work or do anything social. And most people have tight budgets that they cannot coupe with unexpected auto repairs or loss of vehicle altogether. Why is vehicle insurance important for your work? If you cannot get to work because you cannot pay for auto repairs you lose your job. If you cannot drive around and about you don’t enjoy life as much. Your insurance will pay for repairs and damages to your auto or pay enough money to replace if it is totaled or stolen.
Buying a car is one of the largest investments in many people’s lives. Losing it would cause serious hardship and disappointment. Luckily you can protect this large investment with manageable monthly car insurance payments. You can also buy Uninsured Motorist protection so that your damages and injuries are paid if someone without insurance causes those damages and you are victim of a hit and run accident.
- You Cannot Get Auto Loan without Insurance
Large numbers of motorists rely on auto loans to buy the vehicle they want. If you take a loan to buy your automobile you will have to buy a pretty decent insurance with Collision, Comprehensive and Gap Coverage. Without insurance there is no way any lender would borrow money on something moving on four wheels. And without this insurance not only you lose your automobile but you are left to pay the loan in full. Gap insurance pays the outstanding loan if the current value of your auto is less than your loan.
- Protection for Your Way of Life
A vehicle accident has the potentials to ruin someone’s financial health. Not many people can shoulder a huge liability claim, buy another vehicle after a total loss or even pay for repairs out of pocket. Furthermore, the consequences of such losses can be heavy enough to spiral into total ruin with loss of job and property that it is not hard to appreciate importance of auto insurance.
- Something to Sleep Better at Night
Many people buy insurance because it helps them sleep better. Otherwise, they can be consumed with worries for their vehicles, properties, businesses and leaving their families without life insurance.
These are only some of the main reasons explaining why do you need auto insurance? It is worth pointing out that a few of those 10 reasons are there to protect your own losses. Auto insurance may be mandatory but it helps policyholders in many ways too. Then, they can arrange the best cheap car insurance coverage for their circumstances.