Why Is Car Insurance So Important?

If you are a car owner, it is a requirement that you have car insurance as it’s required by law and also essential for you as a safeguard coverage in the event of an accident as well.

You need to protect your car and yourself from theft, accidents or a fire hazard, etc. More people are driving these days than ever before, which in turn creates more traffic on the roads.

This increase also increases the potential risk of accidents. Therefore, as a driver, you could be more susceptible to losses financially in the event that an accident occurs, especially if you live in a “no-fault” state.

Oftentimes, third-party property damage or personal injury can also cause by an accident to your car. So, what you will do in these cases? You will be required to pay the financial expenses for the third-party damage, car repairing, or medical bills.

But what if someone pays all these expenses in your place? Well, here is the spot where a good car insurance policy comes into play.

Your car insurance policy will pay all these expenses for you in exchange for premiums that you paying monthly. We hope that you have understand the basic importance of car Insurance. Now, we will try to elaborate in more detail.

It is Mandatory by law

According to the law, you must have a car insurance policy for your car otherwise you can’t drive on the roads. So, you can say that car Insurance is a legal requirement. However, if you are found without a valid car insurance policy, you will have to pay a fine in the form of a penalty and even your driving license can be canceled.

Car Insurance covers your car in case of accidents

Accidents can cause huge damage to your car for which you have to pay money for its repairing. If you buy a car insurance policy, it will cover your all kind of repairing expenses including the maintenance of car as well.

Car Insurance covers you against third-party damage

In case of unfortunate accidents, your car insurance will cover you against third-party damages like damage to a property of the third party. You will have to pay nothing from your packet as your car insurer will take care of that.

It is very important to mention here that you should choose such a car insurance policy which will provide you the maximum amount of damage coverage.

Covers Personal Injury

In addition to property and vehicle damage, accidents can also cause personal injuries. These personal injuries can be very severe sometimes.

A good car insurance policy will always cover personal injury, so you don’t have to pay for the treatment of a person who got injured due to an accident in which you are your car is involved. Your car insurer will pay all the medical and treatment bills of the injured person, even the costs of hospitalization as well.

Various Riders

Car Insurance will offer you a number of riders that you can buy along with your car insurance policy. Some Popular rider include:

  • Zero Depreciation
  • Engine Cover
  • Roadside Assistance
  • Personal Accident

The benefits of the car insurance policy will certainly be enhanced by many folds due to these riders. For example, with engine cover rider, you will get complete coverage for your engine and its maintenance. The roadside assistance rider will help you in the development of good driving habits.

Replacing Car if stolen

Your car insurance policy would pay the expenses for buying a replacement car, in case your car is stolen. As you know, the crimes of car stealing are continuously increasing. For this reason, you must buy a car insurance policy to save yourself from the cost of a new car.

Some car insurance companies also provide the option of rental car coverage. In this option, you can get insured the car which you have rented from someone or an agency.

Covers you against the damage caused by weather or fire

Your car is susceptible and vulnerable to fire and extreme weather conditions. A car insurance policy will cover you against the damage caused by weather or fire.

For example, a hailstorm is very dangerous for the body and shape of your car. So, in case of damaged caused by a hailstorm, your insurer will pay the expenses of repairing.

Network of Garages

Many auto insurance companies have arranged a network of service centers throughout the nation for customers like you. In these service facilities, as part of your premium, you could receive maintenance and repair services for your car according to the coverage provided by your car insurance policy.

As an example, you can get free engine checkups, tuning, oil-changing, wheel alignment, and many other services mentioned within your insurance policy.

Covers the Legal Fees

A car insurance policy will cover your legal fee in case of a petition filed against you in the court as a result of the damages caused by your car to the third-party property or person.

Your car insurance provider will bear all the expenses of hiring a lawyer, filing a case, or any kind of legal expenses.

Peace of mind

Car insurance will provide you with peace of mind that your car is safe from all kinds of damages caused by environmental conditions, fire, theft, third-party property damage, and personal injury. You can drive your vehicle without worrying about anything.