Do You Need Car Insurance?
If you're a new driver, the idea of making auto insurance payments may be new as well. But take a moment and imagine a situation where you're involved in a horrid accident. How much would you pay for repairs or replacement? If you're sued for causing injuries or damage, how would you cover that? Keep on reading to learn how car insurance can protect you and your vehicle.
Helps You Compensate Other Parties for an Accident You Have Caused
Accidents are unpredictable, and you may get into one that's clearly your fault. Perhaps it's rush hour, and you have hit the vehicle in front of you while lane hopping. The other driver may file a case against you on the grounds of reckless driving. Without car insurance, you may have to compensate the driver from your own pockets.
An auto insurance plan will cover the cost of the accident to help you get on with life. Sure, the premium amount will rise after that, but that's nothing compared to what such a legal case would cost you.
You Get Compensation for an Accident Caused by Another Party
While it can be argued that you have some control over the accidents you can cause, the same cannot be said of accidents caused by other parties. The latter can happen anytime, anywhere, and in all manner of scenarios. Of course, you'll want compensation for the damage caused to your vehicle and the injuries you have sustained.
Assuming both of you don't have auto insurance, you would have to file a lawsuit against the other party. This means spending on legal fees, and there are no guarantees the court will rule in your favor. Even if the judgment favors you, the other party may take years before compensating you. With car insurance, you'll be compensated by the other party's insurer within a few weeks.
Saves Your Assets
The other alternative to having car insurance is being self-insured. This means being willing to cover accidents using money from your pockets. For minor accidents, that might not be a big deal. But what happens when an accident you have caused destroys a luxury sports car? You risk losing all your hard-earned savings in the accident.
Thanks to car insurance, you don't have to cover accidents using your savings. Depending on your coverage plan, your insurance company will take care of everything.
Gets Your Car Back on the Road
A car accident can leave your car ravaged. Without car insurance, you'll have to spend a lot of money on repairs. And since most accidents come when you least expect, you may even stay for a while without your car as you gather enough funds for repairs.
Luckily, repairing or replacing your car is made easy with car insurance. You'll be back to your everyday life in no time.