The Importance and Benefits of Car Insurance

Owning a car is a necessity for almost every adult. Whether they live in a small town or a metropolitan city, they need a vehicle to get to work, go grocery shopping or on a trip with their family. This makes the car an important asset which is why every owner must protect it properly.

One common way of doing so is to get car insurance. In fact, in many states and countries all over the world, having car insurance is required by law. This is because it offers plenty of benefits for car owners including financial coverage for various damages, repairs and legal fees in case of emergencies.

Depending on your vehicle and your general driver profile, you can compare different car insurance quotes from providers in your area to choose the coverage that best suits your needs.

And no matter which plan you choose, here are five benefits you will get from having car insurance.

Covers for damages and theft

No matter how careful you are while driving, there is a possibility that you may get involved in an accident in which your car might get damaged. In this case, your car insurance will come in handy as it will cover the costs of any damages or repairs you may need to do to fix your car.

Besides offering financial coverage for such situations, your car insurance also insures your vehicle against a range of other occasions, including theft, fire, flood and storm damage. If your car is caught in severe weather such as hailstone, you won’t have to stress about the financial aspect of repairing it.


Protects yourself and your passengers

Another great benefit of having car insurance is that it protects you in case you get injured in an accident. This means that your insurance plan will cover all medical expenses that may come along after the incident including hospital visits, doctor bills and surgeries.

In case a fellow passenger is also injured in the accident, your insurance plan can also cover their medical bills. Although this mainly depends on the state laws and the type of car insurance coverage you have obtained, the passengers can file a claim for compensation from your insurance company, the responsible driver’s insurance company or their personal insurance company.


Covers lawsuits and legal fees

When you get in a car accident, the chances are you will have to undergo some legal processes which may be quite costly. One way to cover the costs for all of your lawsuits and legal fees against you is to get car insurance, so you don’t have to pay out of your pocket.

However, in order to be eligible to do this, you must gather some important information from the scene of the accident. This includes collecting evidence to provide proof of who is at fault as well as getting copies of all medical records for any treatments you receive.


Offers no claim bonus (NCB)

In case you don’t make a claim during the policy period, you will be rewarded with a No Claim Bonus (NCB) which will make your car insurance even more affordable. This is a discount premium offered by car insurance companies to car owners for driving well and not raising any trivial claims with their insurance providers.

The NCB accumulates every claim-free term which can lead to a substantial discount on its policy’s renewal premium and range between 20% and 50%. To ensure the bonus isn’t reset in case of a necessary claim, you must also obtain an NCB protector cover.


Allows customization through add-ons

Another great advantage of obtaining car insurance is the opportunity to customize your insurance plan to your needs. This refers to the add-ons, commonly referred to as riders, which offer additional coverage over the basic car insurance plan at additional costs.

Some add-on options you may want to consider including are:

  • Engine protection to cover the costs in an event of any engine malfunction
  • Roadside assistance in case of breakdown of your vehicle
  • Enhanced owner personal accident which offers financial protection against accident-related events such as disability or death

Final thoughts

After your home, your car is the second most important asset you have. Because of that, it is strongly advised that you protect it by obtaining car insurance. Not only will this help cover the costs for any damages and repairs your vehicle undergoes, but also it provides you with financial protection against medical expenses and legal fees in case of an accident.

If you are still hesitant about getting car insurance, make sure you refer to our guide to learn about the importance of insuring your car and the benefits you reap from having it.


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