So you just bought the car that you’ve been considering for months, and it did cost you a pretty penny. But now, to take the car back, you need to pay a fortune to fill up the tank. After all that’s paid, you get another shocker; you need to pay thousands of dollars to properly insure your vehicle, both with mandatory and optional auto insurance coverage. Seems like a waste of money? Well, a vehicle insurance policy is more beneficial than you can imagine.
With over 6 million passenger car accidents every year, the obvious need for an auto insurance policy need not be stated. People understand that there’s a need for it, but what about the benefits of getting car insurance policies? This article will describe just that, telling you why and when spending hundreds or even thousands of dollars on automotive insurance policies is worth it.
Auto Insurance Does Not Have to be Pricey
The biggest reason why many people dislike auto insurance is the price, and yes, there is some truth to it. Policies such as liability coverage, collision coverage, and personal injury protection can be expensive. But there are ways you can cut down the cost.
The first thing to do is get car insurance online. Compare different auto insurance companies, look for the coverage features that you actually need, get quotes from multiple companies and then you can make the right choice. With all the relevant companies compared along with their coverage and prices, you can save a couple of hundred dollars.
With that being said, let’s look at all the benefits of having a car insurance policy.
Medical Bills and Lost Wages
If you get in a car accident that causes serious bodily injuries, not only you’ll have to pay a lot of money for the medical treatments (and you know how expensive medical treatments can be, even an ambulance ride can cost you hundreds of dollars). This is where personal injury protection plans come in.
A personal injury protection plan works like health insurance for car accidents. It covers the cost of medical treatments irrespective of whose fault the accident was. So in case the car accident was the other driver’s fault but he/she does not have sufficient liability coverage limit, you can use your injury protection plan to pay for the treatments.
Not only the cost of medical treatments, but personal injury protection coverage will also pay for any lost wages. Of course, you can’t expect to work when you are in the hospital recovering. So any lost wages due to the accident will be covered by this policy as well.
The importance of this policy is such that 12 states in the US have made it mandatory to have personal injury protection along with liability coverage. These states are called “no-fault” states, and even though you do not live in one of the “no-fault” states, it is better to get a personal injury protection plan.
Park Without Worry
For people who park their car out in the open, or in places where the car is exposed to potential threats, a comprehensive insurance policy is the coverage you need. Comprehensive insurance covers the cost of damages that may happen to your car due to natural calamities when your car is parked.
For example, comprehensive coverage includes:
- Fires
- Earthquakes
- Projectile damage
- Animal damage
- Floods
- Hailstorms
- Riots
- Vandalism
Even though comprehensive coverage does not cost too much, you must be thinking, that it isn’t every Tuesday that someone’s car gets destroyed due to a flood, or is subjected to riots and vandalism. And you’d be right. All these events are very less likely to affect your car.
But comprehensive insurance has one thing under its belt that makes it worth it; theft. The policy will pay the actual cash value of your car if your car gets stolen or damaged due to an attempted break-in.
For people who live in areas where car theft is common, or own a car that’s preferred by thieves, a comprehensive policy is a must for them. Along with theft, this policy also covers damages due to animals. So rats can chew the wiring of your car without making a hole in your pocket.
Damages due to Bad Roads
It might sound unlikely, but some auto insurance companies will cover the cost of repairs for damages due to bad roads. If you have a collision insurance policy and your insurance company covers it, you don’t have to worry about those large potholes and such.
Along with that, collision coverage also covers damages to due collision with anything. From hitting a pole to hitting another car, you won’t have to spend a fortune to fix those damages.
Talk to your auto insurance company about this coverage as some insurers might not provide it.
One Policy, Many Drivers
You might have a family with two or more drivers. So it is very common that your spouse or someone else might use your car now and then. Here’s the great thing; even if they do not have an auto insurance policy, you can just add them to your policy as a registered driver. This ensures that in case they crash your car, your policy would pay for the liability and other costs.
So instead of paying extra for separate policies, one policy would cover the entire family’s car insurance. If you have multiple cars, you can choose one insurer and insure multiple cars to get great discounts.
While auto insurance might cost some money, it is not only necessary to have but worth it. With great benefits, the deal can be made even better if you look for a proper discount and make the insurance more affordable.
