When you are driving on a road, you are prone to accidents. Some accidents can be a big financial shock for you, especially if the accident was your fault and it caused serious injuries and property damage to the other party. Having auto insurance can protect you from this financial loss as your insurance provider will help you pay for the expenses.
Having vehicle insurance is mandatory in some states, however, still many motorists drive their vehicles without insurance. If you are one of them, here are five compelling reasons why you should apply for an insurance policy this instant.
- Allows Legal Compliance
Car insurance may be a legal requirement in many states. Some states require every car user to buy a limit of liability coverage and without this purchase, they might not be allowed to drive on the road.
There is a minimum limit to this coverage plan, however, if you want you can increase the limit. This coverage will protect car users from hefty car repair bills and medical bills in case of an accident.
- Protects You Financially
Having an insurance policy can protect you from financial constraints. When you have car insurance, in case of an accident, you might get injured or even take some time off from work. Your insurance company will pay for the medical bills and protect you during this period.
Paying from the pockets can be very difficult and medical bills can get very expensive. If you injure someone, you will need a lawyer to fight your case. Your insurance coverage will also pay the legal fee and the injured person’s injury claim.
- Your Lender May Require
If you bought your car on a lease, your lender will require you to get collision coverage and comprehensive coverage. Since your lender or leasing company is the lienholder of your car while you are making payments, these two coverages will protect their investment.
In case of an accident, these two coverages will pay for the damages done to your vehicle or the other party’s vehicle. Some insurance coverages also help you pay for the debt if your car is on leave.
- Prevents Costly Repairs
Car repairs can be very expensive. If someone hits your car on the road, why should you be paying for the expensive repairs? Having insurance coverage will give you peace of mind that your repairs are being paid by your insurance company.
Liability coverage will pay for the damage done to the other vehicle in case of an accident, however, having comprehensive coverage will help you okay for your car’s damages as well. For instance, if your car was damaged in a hailstorm, having comprehensive insurance coverage will pay for the repairs.
- Protects Passengers
Your insurance policy will not only protect you and your vehicle from expenses, but it will also cover other passengers sitting in yours. This is particularly important if you are running a cab company.
When you are offering ride-sharing services and cab services, protecting other passengers in the car is impossible. In case of an accident, your insurance company will pay for their injuries as well.