5 Reasons Why Car Insurance Is Important

Andre Oentoro

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As a car owner, you may have wondered about the utility of the expense a car insurance plan causes. If you didn't already know, the damage caused by your car to the public or property is your liability. A car insurance policy protects you f if there is an accident while driving from such undue expenses by paying all the parties involved in the accident, including yourself. That is why having a vehicle insurance policy is mandatory in most places, keeping in mind the interest of both the driver and other passengers.

The several benefits and importance of car insurance are:

1. Pay Upfront and Save Later

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A car insurance policy protects you and your co-passengers from costly and sudden expenses. In the event of a road accident, you can avoid such expenditures by investing a tiny amount in purchasing an insurance scheme. Any proper car insurance plan will offer you coverages such as comprehensive insurance, collision insurance, bodily injury liability, and property damage liability. Such coverage will assist you in the aftermath of a road collision and physical injury and when there is a natural disaster or fire incident.

2. Protect Your Loved Ones

Besides covering the driver and the vehicle, a car insurance policy should also cover the family and co-passengers involved. You must choose a policy that provides adequate cover for your dependents in the event of a fatal car accident. You may contact an insurance agent or apply for an auto insurance quote online to understand the coverage you may get with a certain premium. If you have children or elders in your family, the insurance sum must be adjusted accordingly to reduce their hardships in the future in case of your untimely demise.

3. Save Your Valuable Time

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The due process right after a car accident can seem incredibly tedious and time-consuming. Moreover, it will be more punishing for you to go through the legal and medical procedures if you are seriously injured in the mishap. Therefore, appropriate insurance coverage can save you from negotiating with other parties involved in the accident so that you can utilize those critical hours to look after yourself medically.

Your car insurance will also save you from the hassle of collecting quotes from different repair shops after an accident since the policy will already cover your car repair. After you make the insurance claim, the insurance provider can assist you in managing the procedures and even support you in such times.

4. Complement Your Health Insurance

There are car insurance policies that cover the medical expenses generally excluded by most health insurance plans. For example, in an accident, your car insurance plan can help you afford the costs of dental work, X-rays, surgeries, hospital visits, and other accident-related medical procedures.

Moreover, if you took your health insurance plan a long time back and the coverage seems inadequate, you can supplement that with a suitable health insurance plan with the required coverage.

5. Enjoy Certainty and Peace of Mind

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Whether you wish to purchase a car insurance policy or not, in most places, it is legally binding for car owners to have car insurance. So, you can save yourself from legal complications with insurance coverage. If your vehicle is lost or damaged due to an accident, you can just sit back and calmly follow the procedures to claim the insured amount. The insurance companies generally have a massive network of garages where you can repair your car, so you need not take worry on that front as well.

Finally, car insurance guarantees you that your financial stability won't be disturbed by a sudden accident. Even in the case of your death, your family will reap the benefits of the insurance. Therefore, a car insurance plan can give you and your family peace of mind.

Do You Need Comprehensive and Collision Coverage on Your Car?

As the name suggests, comprehensive coverage covers most things that need to be covered. It may bear the damages to your vehicle from fire, theft, hail, earthquake, and vandalism. Such insurance plans generally require you to pay an amount out of your pocket during the repairs, which gets reimbursed to you later. You should choose a comprehensive car insurance policy if you have a top-of-the-chart or hugely expensive machine.

Collision coverage is a more specific insurance product more appropriate for leased cars. It helps you repair or replace your car when it is implicated in an accident with another vehicle or other immovable object. Keep in mind that it does not cover the losses other than the vehicular damage caused by the accident.

The Bottom Line

When it comes to selecting car insurance, there is no one-size-fits-all product. The car insurance you buy will depend on the vehicle's age, market value, seating capacity, and locality. The driver's age, the number of dependents, and the law-and-order situation of the area are also important deciding factors for a car insurance plan. No matter which policy you choose, compare different plans and read the policy statement thoroughly before making the decision.

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Andre Oentoro is the founder of Breadnbeyond, an award winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).


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