Why Do You Need Car Insurance?
Car Insurance can pay for expensive car accidents
Car insurance rates can seemingly be expensive, but this cost pales in comparison to the expenses that you may incur if you are involved in an auto accident without insurance coverage. Car insurance may be used to pay for most of your vehicle repairs as well as some medical expenses and personal property losses. In addition, your insurance policy may pay for damages you cause to other drivers or property owners. Remember that auto insurance can also be used to pay for damages to your car related to theft, natural weather events and more. Altogether, you may have to spend tens of thousands of dollars out of your own pocket if you do not have auto insurance coverage if a serious and damaging event occurs.
Car Insurance helps with Legal Issues
Drivers are legally required to take full financial responsibility for damages they cause. If you do not pay for the expenses that you create for others, they could take you to court and sue you for damages. With liability insurance, you can reduce the chance that they may happen to you. A judgment against you can be listed on your credit report as a derogatory item. Bad credit scores can affect your ability to qualify for a home mortgage, a car loan and more. They can even impact your ability to get a job in some cases.
Non-car accident benefits
Remember that car insurance also offers non-accident benefits in many cases. Depending on the terms of your coverage, you may have access to non-accident benefits that include towing service, rental car reimbursement, personal property claims and more. These can be used to reduce out-of-pocket expenses that you may otherwise be responsible for yourself. Even if you have not used your coverage for these benefits in the past, you can educate yourself about the benefits so that you can take full advantage of them when the opportunity arises in the future.
Remember that you can shop around for lower car insurance rates, and you can adjust your coverage to control the rates as well. Because you cannot afford not to have a car insurance policy, it makes sense to look for the best overall value available.