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Car insurance is usually not prioritized and is often considered a luxury. If you have been driving for a while, you may wonder why you should even bother paying hefty money to get your car insured? However, the rule of thumb here is to be better safe than sorry.
Unforeseen circumstances like road accidents, theft, fire, and floods happen each day. Were you aware that around 38,000 are killed yearly in car accidents? U.S traffic fatality rate is 12.4 deaths per 100,000 inhabitants, and almost 4.4 million people get serious injuries where emergency medical care is required. You can face heavy financial and health losses if you do not prepare beforehand with an insurance policy for your car. Here are five reasons that emphasize the importance of car insurance.
1. Legal Requirement
In most parts of the world, car insurance is mandatory. The Motor Vehicle Act has made it mandatory for each car owner to purchase third-party insurance that provides at least medium coverage. Most states in the USA require you to have car insurance, and it is law throughout the European Union. The basic form of this insurance would not only pay for your car repairs but will provide compensation for any injuries and take care of medical bills.
2. Coverage of Accidents
Accidents can be stressful for you as they can drain away all your savings and finances. Investing in insurance can ease your stress and provide the financial cushion you need in such times. Certain types of car insurance will pay you for your loss regardless of who’s at fault in the accident.
3. Even Your Passengers Are Well-Protected
Some comprehensive insurance policies even pay for your passengers and their medical bills if they suffer from injuries in the accident. A third-party liability has to protect the non-drivers involved in the accident and provide at least a fixed compensation for their medical bills. If you have caused an accident and harmed the health of a passenger of your car, it should be a moral obligation to pay for their medical bills. Your car insurance can come in handy in such situations.
4. Supplements Your Health Insurance
Car insurance and your health insurance can work closely to help you recover from the injuries and financial drain due to the high healthcare costs, and can cover certain injuries regular insurance doesn’t cover. For example, a solid car insurance policy can complement your dental insurance.
5. Protects Businesses That Own Cars
Several businesses depend on transport systems. That includes companies that deliver items, provide services like home repairs, and offer ride-sharing services. Even if your company doesn’t use vehicles often, you’ll still need insurance if it owns any vehicles. Commercial policies are very favorable in this regard. This lets you ascertain that your drivers are covered and your company protected from financial losses in the case of an accident occurring.
Choosing an insurance policy for your car may seem like an overwhelming process at first, especially due to the availability of many options these days. You must do extensive market research to get the best car insurance quote that meets your budget and is convenient for your use. You can always seek help from staff members of insurance companies or use live chats to make a well-informed journey towards insuring your car and protecting your future.