Why it is important to have car insurance? Answer is quite simple, it is mandatory by law. But if the question is, why does law mandate car insurance, answer will be tough for many peoples. To answer the question we will have to understand types of auto insurance. There are three major types of car insurance:
Collision insurance
This is must for every car owner/ driver. It provides monetary help after an accident to reimburse damage/ loss of collided car. It covers every loss caused in collision up to insurance coverage limit.
Comprehensive insurance
Comprehensive insurance is not essential in some states. It secures you and your car for all possible threats caused by natural disasters like car theft, riots, vandalism, earthquake, flood, Tsunami, etc.
Personal Injury Protection/ Liability Insurance
These are two different kinds of insurance and are used as additional coverage with standard policies. Both of these are used to pay medical bills, loss of income, other expenses made to cover-up accidental damage regardless who is responsible.
Benefits of car insurance
Car insurance is the easiest way to get immediate relief after an accident because it offers excellent support to overcome the damage of personal injuries and loss of property. However you can recover everything excluding loss of live, its major benefits are as below:
It covers all expenses generated by a car accident whether they are medical bills, loss of property, damaged vehicle, loss of income, etc.
It pays legal fees and compensatory amount if the other party files lawsuit against you because of car accident. Moreover if you loss the claim, company will give compensatory amount to the other party saving your pockets.
It can’t rewind the life after someone’s death but assist to overcome the grief and loss of finances due to death through compensatory amount so the family can survive.
If the car is damaged in accident, car insurance pays repairing expenses for the part or the vehicle. Besides it, if the vehicle is stolen or victimized by natural disasters like flood, earthquake, vandalism; insurance company will compensate the loss.
You get peace of mind after all insurance company is there to worry about unfortunate car accidents. When it will happen, it will cost you nothing or equal to zero.
In the last if you don’t make any insurance claim throughout the year, you receive a ‘No Claim Bonus’ as discount at renewal of the insurance policy.
Collision insurance
This is must for every car owner/ driver. It provides monetary help after an accident to reimburse damage/ loss of collided car. It covers every loss caused in collision up to insurance coverage limit.
Comprehensive insurance
Comprehensive insurance is not essential in some states. It secures you and your car for all possible threats caused by natural disasters like car theft, riots, vandalism, earthquake, flood, Tsunami, etc.
Personal Injury Protection/ Liability Insurance
These are two different kinds of insurance and are used as additional coverage with standard policies. Both of these are used to pay medical bills, loss of income, other expenses made to cover-up accidental damage regardless who is responsible.
Benefits of car insurance
Car insurance is the easiest way to get immediate relief after an accident because it offers excellent support to overcome the damage of personal injuries and loss of property. However you can recover everything excluding loss of live, its major benefits are as below:
It covers all expenses generated by a car accident whether they are medical bills, loss of property, damaged vehicle, loss of income, etc.
It pays legal fees and compensatory amount if the other party files lawsuit against you because of car accident. Moreover if you loss the claim, company will give compensatory amount to the other party saving your pockets.
It can’t rewind the life after someone’s death but assist to overcome the grief and loss of finances due to death through compensatory amount so the family can survive.
If the car is damaged in accident, car insurance pays repairing expenses for the part or the vehicle. Besides it, if the vehicle is stolen or victimized by natural disasters like flood, earthquake, vandalism; insurance company will compensate the loss.
You get peace of mind after all insurance company is there to worry about unfortunate car accidents. When it will happen, it will cost you nothing or equal to zero.
In the last if you don’t make any insurance claim throughout the year, you receive a ‘No Claim Bonus’ as discount at renewal of the insurance policy.
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