You can cover your car against many unforeseeable dangers. Insurance against accidents is the most common among car owners. However, you may also consider theft, fire, and vandalism insurance. Most people look at the probability of a risk happening for them to consider the insurance cover. Car accidents are pretty common anywhere in the world. In Canada, at least 100, 000 collisions occur annually. So, most people take an accident cover. Why do you need car insurance? Here are the most important reasons.
1. To Reduce Liability
If the car is involved in an accident, any person who is injured requires medical care and personal injury compensation. In the case of fatalities, wrongful death and many more liabilities will come your way if you don’t have insurance. Insurance should cover all the passengers in the car. It should also cover property damage and any other liability that might arise from the accident.
Insurance is the only way you can cushion yourself from the liabilities. Whatever you are buying insurance, it is good to check for the items that are covered. Buying cheap insurance might be costly in the end because it probably lacks coverage for essential items. You can only get a good deal by comparing the different choices available in the market. A good deal is one that covers all the items that you need at a favorable cost.
2. Cost Of Repairs
Your car will need repairs after it has been involved in an accident or vandalized. The cost can escalate quickly, especially if the damage is extensive. If you have insurance cover for such losses, you will not be paying for them. The car will be repaired fully without it costing you any more money. Insurance gives you the peace of mind that you require because you will not need to worry about additional costs. You will be sure to return to the road in your car as soon as possible. If the vehicle is a write-off, insurance companies compensate you for the car so that you can buy a comparable vehicle in the market.
3. To Satisfy Lenders
Auto loans are pegged on insurance cover for the bought vehicle. If you are purchasing a car using a loan, you must buy car insurance from accredited sellers. Although the lender gives you the free will to choose the insurer, they insist on certain coverage areas, including car damage. They want the car to have maximum value during the duration of the loan repayment. If you’re going to stay in their good books, you will need to buy the right cover. No lender will want his or her interests to be put at risk. If you are without insurance, you will pose a threat to them because of their lienholder status.
4. To Protect Vulnerable People
Every time there is an accident on the road, the involved parties might have different economic powers. The person who has more economic power will not have much disruption. However, vulnerable people are at risk of sinking after that. Car insurance protects both parties. If the car is destroyed, the car can be repaid or repaired. Whatever option, the little guy is not left out. If there are vulnerable people who are injured, they can get the necessary medical care to give them the relief they badly need.
Read More: 8 Most Common Causes of Car Accidents
5. Cater To Disabilities
Apart from medical bills, insurance can also compensate someone for permanent or temporary disability. If the person can no longer go to work to care for his or her family, he can get compensation for it. This aspect of insurance provides the necessary cushion and protection of vulnerable people.
6. Some Countries And States Make It Mandatory
Upon realization that accidents can happen against anyone, some states institute legal requirements of holding at least a third party insurance cover for the car. This will ensure that everyone else is safe. It will, therefore, be illegal for anyone to drive a car that is not adequately insured. If you happen to own a car in such places, you will need basic insurance. In Canada, it is mandatory to have basic car insurance and accident benefits. Insurance can ensure that you return to work at the right time after an accident. You can access medical care and car repair without overthinking it. If you don’t have insurance, you will need to arm yourself with money enough to cover liabilities and fines on the road. Furthermore, auto loans will be hard to access without proper insurance coverage. Insurance is, therefore, an essential aspect of our life.