Insuring your car can seem like an unnecessary expense, especially if you have a newer car that you don’t think will ever get into an accident.
However, insurance can provide some major benefits, both financial and otherwise, so it’s important to weigh all of your options before deciding on whether or not you want to insure your vehicle.
If you decide to go with insurance, here are seven reasons why it could be worth your while to get insured.
1) You Are Legally Required to Have Insurance
You are legally required to have insurance if you own a car in the United States. You may be fined for not having a policy, so it is best to get one before you need it.
You will need to present proof that your vehicle has been insured when registering your car or renewing registration and can do this by displaying an insurance card on your windshield or by showing the agent at time of purchase.
The coverage usually starts from when you sign up for the policy and goes until when your registration expires.
In most cases, drivers will pay either monthly or yearly rates for their policies but there are some companies that charge more per month than others.
One thing to consider is how often you drive as some companies offer discounts for those who use their cars less often.
2) Insurance Protects You Financially
Insurance protects you financially by covering the cost of damage to your vehicle or property if an accident is caused by you, a family member, or another driver.
If you’re involved in an accident that was not your fault, insurance will cover the medical bills and repair costs for the other driver’s car.
Plus, if you have collision coverage on your policy and are forced to pay for repairs out-of-pocket as a result of someone else’s actions, your collision deductible may be waived.
Insurance Helps You Get Back On The Road: Even though it’s stressful when something goes wrong with your car, being covered by insurance helps put things into perspective.
Getting back on the road quickly is possible with most policies covering tows, rental cars, roadside assistance and more.
Insurance Keeps You Protected: In addition to financial protection, having auto insurance means you’ll never be left unprotected against any unexpected accidents involving your car– no matter who’s at fault.
3) Insurance Protects Against Uninsured Drivers
You are probably familiar with the phrase, An ounce of prevention is worth a pound of cure. This same principle applies to insuring your car.
For example, if you have collision coverage on your car and you get in an accident where the other driver was uninsured, then your insurance company will cover the cost for fixing your car.
If you don’t have collision coverage and the other driver was uninsured, then you would be responsible for paying to fix your own car.
Uninsured Drivers Cost Average American $600-$1,000 Annually: The average American pays about $600-$1,000 per year because they do not carry auto insurance.
4) Insurance Covers Medical Bills
If you’re ever in an accident, the costs for repair or replacement of your car can be astronomical.
That’s why it’s important to invest in proper insurance coverage for your vehicle.
Depending on the type of coverage you purchase, your insurance company will cover the costs for repairs or replacements if there’s a collision, fire, theft, vandalism or another covered incident.
Plus, if you’re injured in an accident and need medical treatment, a good auto insurance policy will cover some or all of those expenses too.
You Won’t Get In Trouble With The Law: When you have auto insurance, you have peace of mind that someone else is responsible for any accidents or damage caused by driving under the influence.
For instance, if someone gets into an accident because they were drinking and driving, then that person would be sued by their own insurance company.
5) Insurance May Cover Rental Cars
Insurance may cover the cost of a rental car if your car is in the shop for repairs or if you must drive someone else’s car.
If your insurance does not cover a rental car, it may have to be paid out-of-pocket, which can quickly increase your expenses.
Another benefit of insuring your car is that it will protect you from financial loss caused by uninsured drivers.
If an accident occurs and the other driver doesn’t have insurance, their liability will most likely come out of their personal assets.
The final benefit of insuring your vehicle includes providing protection against injuries sustained in an accident with another vehicle or person on foot, bicycle, etc.
6) Insurance Covers Towing and Labor Charges
If you are in an accident and your car is not drivable, your insurance covers towing charges up to $100.
It also covers labor charges for a new battery or a jump start up to $50. You can get discounts on your rates if you have safety features such as daytime running lights, anti-theft devices and air bags.
In the event that you were at fault in the accident, your insurance company will pay for all damages to the other driver’s car. In some cases, they may cover their medical expenses too.
When you buy additional coverage (like underinsured motorist coverage) it may even cover the other driver’s medical expenses when they were at fault in the collision!
It’s always good to know what’s covered by our insurance and what isn’t before filing a claim.
7) Insurance Can Lower Your Rates
When you purchase your car, you may be offered an insurance package. Insurance can lower your rates if you have a clean driving record and if you’re willing to pay for coverage up front.
It’s worth noting that insurance is not mandatory in all states, but it does offer some valuable benefits.
You get protection from costly repairs and possible damage to the vehicle.
The repair process will go more smoothly because the insurance company will help you find a reputable mechanic or tow truck company.
If there is no liability coverage on your auto policy, any damages caused by your vehicle will be covered by your insurer.
Many insurers provide comprehensive or collision coverage which covers damages to other people’s property when they collide with your car. These coverages are included in most policies.