The Importance Of Auto Insurance

Cars are now one of the top means of transportation in the whole world. The car has evolved from its early beginnings, and we should not forget the genius of Karl Benz and his Motorwagen invention in 1886 which paved the way for the development of the modern car. We can’t forget Henry Ford either for manufacturing the Model T in 1908 and making it available to the American masses.

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Car ownership is a huge responsibility. There are a lot of costs involved in car payments if you bought it on installment, and maintenance. Gas, tires, routine checks, car wash, registration, parking fees etc. It’s a long list, but one of the more important expenses that we have to prioritize is auto insurance.

There are car owners who think that auto insurance is not important and it’s just a waste of money. If given the choice, they would not pay for this on a regular basis. They have this mindset that they are not experiencing the benefits from it.

Why Auto Insurance Is Important
Car owners who think that they can do away with auto insurance just because they are not reaping any benefits from it have gotten it all wrong. The real purpose of insuring is to protect from losses you might incur due to car damage. Imagine the huge financial burden that you would have to shoulder in case of an accident that involves your vehicle or another. The right mindset is being thankful that they don’t get auto insurance claims because this means that they don’t get into accidents that cause damage to their cars.

Liability And Property Damage Insurance
The most common type of auto insurance is liability and property damage car insurance. This provides minimum coverage and is mandatory for all car owners in all 50 states in the U.S. Coverage includes damages to a third party if the damage caused is your fault. When you cause bodily injury to another driver this policy will cover the expenses up to a fixed amount only. Property damage will cover the other person’s car or other people’s property like traffic signs or guard railings. The policy will pay for damages up to the amount listed in the policy.

Since this type of insurance is required by law, one can get arrested if you are caught driving without liability insurance. Getting caught on a regular basis can lead to bigger fines, suspension or revocation of license and even land you in jail. This can also have an effect on your driving records and give you more expensive insurance premiums in the long term.

Financial Protection And Less Worry
Having at least the minimum coverage can save you a lot of money and give you peace of mind. Getting into an accident is costly, imagine what you bill would look like if you end up paying for your car and the other party’s expenses as well. This is why getting a higher comprehensive coverage is recommended. The costs just get bigger if hospitalization, income replacement, and funeral expenses come into play.

Liability coverage protects the other party involved in the accident. The damage to your car is not included in the coverage so you would have to shell out your own money for repairs. This is where comprehensive coverage comes in. When you get comprehensive insurance coverage will include your vehicle and damage sustained by it. There are options to include other damage aside from the collision. Fire, theft, storm, flood, vandalism and glass damage can all be inserted in your policy coverage.

Auto insurance has saved a lot of people each year from spending a fortune on car-related accidents. It is something that car owners should embrace and be thankful for. The added cost that would ensure peace of mind is worth it. Why would you risk not having coverage and bear the burden of a possible major incident involving your vehicle?

For those who are averse to paying for auto insurance, just be thankful for the protection that you have and don’t wait for a major road incident involving your vehicle to happen before you realize that having coverage is indeed important.

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