IMPORTANCE OF CAR INSURANCE
The main purpose of car insurance is to provide financial protection against theft, physical damage due to traffic accidents (especially from teenagers) and other damages caused by things other than road collisions. Premiums have to be paid by the car owners, who are the insured, to the insurance company, who are the insurers, so as to help cover the risks they take by insuring the car.
For most drivers, car insurance may seem to be a burden due to the high premiums charged by various insurance companies offering insurance quotes online. The car insurance premiums may vary from vehicle to vehicle according to the age of the driver, their driving record and experience, type of car that is being insured and the occupation of the car owner. These premiums may be paid monthly, quarterly, or semi-annually depending with the insurance company and the financial stability of the car owner, even if it’s car insurance for teenagers. Despite having to pay the high premiums, car insurance is very important in various ways:
- Most states require the car owners or driver to have car insurance on their vehicles. However, different states will also mandate what type of car insurance is required. In these states, if cars are found without insurance cover by the traffic cops, the drivers run the risk of having them impounded on the spot. This may lead to being charged heavy fees or be fined huge amounts of cash by courts. To make matters worse, your driver’s license may be suspended for a certain amount of time, thus leading to many personal inconveniences. Therefore, getting your car insured may save you many costs and inconveniences.
Car insurance generally protects one from personal liabilities should the car get into an accident. This is probably one of the main reasons to get car insurance aside from it being mandatory in the state. If a driver gets into an accident and he is at fault, he is usually held responsible for the costs of medical bills if he or other people in his car get injured and major costs if any or all of his passengers die. He may seek to get a financial loan to cater for the costs which may take years of future payments, if he cannot pay them at once. On the other hand, if one as a pedestrian gets hit gets hit by a car that has not been insured, one will most likely have to pay for his or her medical bills. Having a car insurance will usually help in making those payments. In addition, the car can get repaired or if it is in the worst condition, get replaced therefore saving one the pocket expense of doing so.
Another importance of car insurance is helping in repairing another vehicle that the insured has hit. It is usually very expensive repairing vehicles. One may be required to pay for the repairs or at worse conditions to replace the vehicle itself which may be very expensive for a driver to do so by his own. If he runs into a property and causes damage, he will be required to make payments for the repairs. If he is not financially stable, he may run into bankruptcy if not protected by car insurance
Generally, having car insurance will put one’s mind to ease, knowing that the insurance has protected your car investments and that you are protected from liability lawsuits.
Before taking a certain insurance coverage, even if it’s cheap car insurance for teenagers, it is important for the car owner to have the knowledge of all the coverage he needs. This is to avoid scenarios where one thinks that he is fully covered, but upon disasters he discovers that his current insurance cover does not include some liabilities such as natural disasters. It is therefore advisable for a car owner to get an insurance cover policy that caters for all problems associated with vehicles such as theft, fire, natural disasters such as storms, vandalism, falling objects and acts of God. These are mainly found in comprehensive insurance coverage, which is the most common type of car insurance cover policy. Thus, consumers should not assume but should gain insight to what their current insurance policy includes.
Cutting a type of coverage so as to save cash is not usually a wise idea since the costs associated with catering for the liability may be too much to pay individually, ending up being more expensive as compared to the premium bill.