A car insurance is an agreement between the Insurance company and the car owner; wherein the car owner pays premiums for particular risks covered and the company pays damages, in case of accident.
Car owners need an insurance cover by law in nearly all states in the USA. The Insurance covers the car repairs, others medical bills, others properties and the legal fees of the insured, should he be taken to court.
There are six (6) reasons why we need to have an Insurance cover for our cars.
1) IT IS DEMANDED BY LAW.
The laws of different states demand car owners to pay car insurance minimum limit Liability coverage. An Insurance minimum limit is the highest amount that an insurer can pay in case a covered risk occurs. Most car owners are advised to cover their cars above state minimum limits. This is to avoid possibilities of settling some accident expenses out of pocket. To further be safe the car owner is advised to cover his car with other voluntary Insurance policies like uninsured motorist and personal injury coverages. These serve as a backup in case the expenses exceed the minimum limits.
2) CAR INSURANCE GIVES FINANCIAL PROTECTION.
Faced with any accident, the driver or car owner is charged with the cost related to the accident. For example, the injured's medical bills, legal charges, and even income loss if the injury allows the victim unable to go to work. In a case like this therefore, the Liability minimum Coverage and their limits, uninsured motorist, comprehensive etc give the required financial protection.
3) THE LENDER AND THE LEASER NEED CAR INSURANCE.
The car owner needs a car insurance coverage because the lender and the leaser require especially comprehensive and collision coverages. The lender and the leaser as the immediate people legally in charge of the car, or lienholders need to protect their investment. The above coverages can replace or repair a car in case of an accident.
Secondly, apart from comprehensive Liability and collision, there is the Gap Coverage that helps replace the car if it is totaled in an accident or Gap helps pay your loans if the depreciated car cost is lower than what one owes as loans.
So we need an insurance cover because leasers and lenders require it to protect their investment.
4) CAR INSURANCE COVERS CAR REPAIRS.
Car owners must have liability car coverage as a necessity as imposed by law. The Liability car Coverage pays for the damage of others in case of an accident. For the safety of the car owners themselves, they need comprehensive and collision car insurance to cover themselves and their cars. For example, if the car hit a hailstone, mailbox, or suffer theft or fire or is vandalized the above coverages will cover the cost of repairs. So we need a car insurance coverage to provide financial assistance during repairs in case of an accident.
5) CAR INSURANCE COVERS THE PASSENGERS.
We need a car insurance coverage because it helps to indemnify us- the car owner and the car occupants. Policies like Medical payments and personal injury pays for the bills of the driver and the car occupants, if they are injured in an accident. This Coverage helps pay hospital visits, doctors bills, and surgical operations.
6) CAR INSURANCE HELPS FOR SELF PROTECTION.
The law demands in most states that all drivers have a minimum Liability insurance coverage. But there are still defaulters who drive uninsured cars. The Liability Coverage protects not the driver and his occupants, but the driver and occupants of the other car he may hit in an accident. In case the car owner has an accident with such an uninsured, the uninsured motorist coverage then pays for the driver's medical bills.
Dear reader, we need a car insurance coverage whether demanded by law or not. Having a proper Insurance coverage, protects your car, your purse and yourself, since it will give you some peace of mind. Contact your local agent for the Coverage you may need.
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INSURANCE