It’s easy to talk about why you have to have car insurance. It may be a requirement in the state you live in. Yet, it’s a very good investment for yourself and your family, too. There are numerous benefits of having a policy that offers complete protection to you. Here are a few key examples of when auto insurance benefits you.
#1: You Are at Risk of Being in an Accident
Accidents happen all of the time in every city and on every roadway. It’s a big deal because many of them lead to costly losses.
The Insurance Institute for Highway Safety said that, in 2017, 34,247 crashes occurred in the United States. Those crashes involved 52,645 motor vehicles, and 37,133 people died. Considering this, you are at risk of a crash whenever you operate a vehicle. Without coverage, you could be personally financially responsible for the losses.
#2: You’ll Pay Less if an Accident Occurs
The biggest benefit of coverage is that you’ll pay a small amount now for protection. However, if a large accident occurs, the policy will cover those repairs. The average cost for an auto insurance policy in the United States, according to the Insurance Information Institute, was $935.80 per year in 2016. However, if you consider that a single head-on crash can amount to thousands of dollars in losses, it’s clear that you’ll pay less by having a policy than if you did not have one.
#3: Car Insurance Helps You Avoid Devaluation to Your Car
Some types of policies benefit you by helping to prolong the life and the value of your car. You can’t stop a random hailstorm from damaging the vehicle’s body. You can’t know if a tree branch will shatter the window. However, if you have comprehensive auto insurance, it can cover the losses you incur from these risks. This saves you money in the long term. It also helps you return the car to a marketable position in case you ever want to sell it.
#4: You Gain Peace of Mind
Knowing that you have a policy that protects your family can give you peace of mind. Could you afford to make these payments to repair your vehicle without it? Would that put your family at risk of financial difficulty if wrecks occur. Car insurance will help you avoid having to face significant monetary losses.
#5: It Safeguards You Against a Lawsuit
Even if you made a mistake and caused significant damage to another person’s property, you don’t deserve to lose your house over it. With auto insurance, you get help with claims others make against you in accidents. That includes legal defense if you need it.
It’s easy to see the benefits of car insurance. Going without is simply too much of a risk.
FAQ’s About 5 Benefits of Having Car Insurance
Why do I need car insurance?
Car insurance provides financial protection in case of accidents, theft, or damage to your vehicle.
What are the different types of car insurance coverage?
There are several types of car insurance coverage, including liability, collision, comprehensive, and uninsured/underinsured motorist coverage.
How does car insurance protect me in case of an accident?
Car insurance can cover medical expenses, repair costs, and legal fees if you’re involved in an accident.
What are the benefits of having comprehensive car insurance?
Comprehensive car insurance covers damage to your vehicle from non-accident related incidents such as theft, vandalism, and natural disasters.
Will my car insurance cover a rental car if my vehicle is in the shop for repairs?
Some car insurance policies offer rental car coverage to provide a temporary replacement vehicle while yours is being repaired.
Can I customize my car insurance policy to fit my specific needs?
Many insurance companies offer customizable policies that allow you to tailor coverage to your individual requirements.
How does car insurance protect me from financial loss in case of theft?
Car insurance can provide compensation for the value of your stolen vehicle, helping to mitigate the financial impact of theft.
What is the importance of uninsured/underinsured motorist coverage?
This coverage protects you if you’re involved in an accident with a driver who has little or no insurance, ensuring you’re not left with the financial burden of their negligence.
Does car insurance cover damage caused by natural disasters?
Comprehensive car insurance typically covers damage caused by natural disasters such as floods, hurricanes, and earthquakes.
Are there any discounts available for car insurance?
Many insurance companies offer discounts for safe driving, multiple policies, and anti-theft devices, helping to reduce the cost of car insurance premiums.
Do you need car insurance to drive?
Yes, in most states in the US, it is a legal requirement to have car insurance to drive a vehicle. Driving without car insurance can result in severe penalties, including fines, license suspension, and even jail time. Car insurance is essential because it provides financial protection in case of an accident or damage to your vehicle.