5 Practical Reasons You Should Always Have Car Insurance

Car insurance can save you a lot of headaches and money. Below are specific reasons you should never drive without car insurance.



1. To Protect Others From Accidents You Might Cause

Even the most careful drivers do not have zero accident risks. There is always a risk that your car might cause an accident and harm others. For example, a hidden or undiagnosed brake fault might cause you to hit a pedestrian. Auto accident victims lose money due to lost wages and medical bills.

Buy liability insurance so that victims of your accidents don't wallow in financial ruin. With the right coverage limits, your auto insurance carrier will compensate such victims for their legitimate losses.

2. To Avoid Time-Consuming Processes in Case of an Accident 

An auto accident can consume a lot of your time in several ways. For example, you may have to:

• Deal with the police
• Communicate with your insurance company
• Deal with accident victims in terms of compensation
• Repair your car and confirm that it's safely and fully fixed
• Appear in court to defend yourself

These processes can take much of your time—best spent on hobbies, with families, or income generation. Auto insurance can free up some of your time because the carrier will handle the above tasks. For example, your insurance company will negotiate with the victims and appear for you in court.

3. To Minimize Auto Accident Expenses

An auto accident is expensive and can cost you money in several ways. First, you may have to compensate victims of your accident for their bodily injuries and property damage. Secondly, you must also cover your own property damage and bodily injuries. Having auto insurance coverage reduces some of these expenses.

For example, your insurer will replace or repair your car if you have collision or comprehensive coverage. You also don't have to spend money on your legal defense, as your insurer will usually handle that. The insurance company may even pay your medical bills if you have the right coverage.

4. To Satisfy Third-Party Requirements

Some third parties in your life may require auto insurance coverage from you if you want to maintain your relationship with them. Below are a few examples of these third parties.

The Government

The government requires liability coverage from all motorists. The coverage compensates third parties who might suffer injuries or property damage due to your mistakes.

Your Car Financing Company

If you buy your car on loan, the loan company wants to know the money they have on your car is always secure. Many financial institutions require you to carry comprehensive and collision coverage to enjoy their car loans. That way, the insurance company will compensate the financing company for accident losses you might not afford.

Your Car Leasing Company

Like financial institutions offering car loans, car-leasing companies demand maximum investment protection. Demanding comprehensive and collision insurance is one method of providing this protection.

5. To Ensure You Always Have a Car

Some people lead lifestyles, work, or live in areas requiring private transportation. For example, you need a car if your city or town's public transport system is unreliable and you commute daily to work. In such a case, not having a car even for a few days can affect your life in several ways.

Many car insurance policies provide rental car reimbursement. The coverage pays for a rental car if your car is in the repair shop or you are waiting for a replacement car after losing yours to a thief. That way, you don't have to suffer disruptions due to the lack of a car.

Contact Advantage Insurance Agency to help you evaluate your car insurance needs and buy the right policy. We will help you determine the right coverage, add-ons, and limits for your circumstances.