5 main reasons why you need car insurance • Benzinga


Are you driving without car insurance? If so, you could face steep repair bills, license suspension, and even jail time if this isn’t the first time you’ve been caught without coverage. Although some form of liability coverage is mandatory for driving in almost every state, the benefits of auto insurance go far beyond just keeping you out of trouble with the law. Read on to learn more about why you should buy auto insurance today if you aren’t already covered.

The top 5 reasons you need car insurance

No one wants to think about the possibility of being involved in a car accident. Unfortunately, road crashes are relatively common — each year, approximately 4.4 million men and women experience a crash serious enough to require medical attention. Maintain car insurance Coverage can help you avoid thousands of dollars in medical bills and fines if you are involved in one of these accidents. Here are five reasons why you should never go without insurance.

  1. Pay in case of accident

Do you know how much it will cost to repair your vehicle after an accident and do you have enough money in your savings account to cover body repairs? Contrary to popular belief, even small fender benders can result in high repair bills. Here’s what you can expect to pay for some of the most common repairs body shops see after an accident.

  • Repair or replacement of bumper damage: $300 to $1,500 (more if your bumper has sensors or backup cameras damaged in the accident)
  • Car door repair or replacement: $50 to $1,000
  • Windshield repair or replacement: $50 to $1,000
  • Damage to your vehicle’s paintwork: $500 to $2,500 (maybe even more if you drive a luxury or sports car)

If you’re involved in an accident and don’t have car insurance, you may have to pay for all of these repairs out of pocket. These bills can put a strain on your household finances, especially if you rely on your vehicle to get to school or work. However, if you have auto insurance, you may be able to file a claim with your insurance company to pay for much of the repairs you need to fund.

Important note to keep in mind: if you want protection for your own vehicle following an accident, you will need to ensure that you have collision coverage on your vehicle. car insurance Politics. Collision coverage is not a legal requirement to be on the road, which means that if you purchase state minimum coverage, you will not be able to make an insurance claim for your own vehicle as a result of an accident. an accident. Luckily, all major auto insurance companies offer collision insurance as supplemental coverage. You can easily bundle your minimum liability insurance with your collision coverage without spending hours re-researching companies in your area.

  1. Pay for someone else involved in an accident

The government requires drivers to maintain car insurance to protect themselves from the potentially astronomical costs they would face from other drivers following an accident. For example, if you cause a major accident, the driver you collide with could sue you for medical bills, the cost of repairs to their vehicle, loss of use and more.

In order to avoid placing this financial burden on individuals and filling the legal system with vehicle-related lawsuits, you should purchase liability insurance. When you agree to an insurance settlement in most states, you also give up your right to sue the other driver for damages. This process reduces the number of collision-related court cases because most people would rather get a check from the insurance company now than spend money hiring an attorney and waiting months or even years. let the matter be closed.

  1. Protect your assets

Imagine you’re involved in a major accident and you cause $100,000 in damage to another driver – a scenario that’s not as crazy as it sounds when you consider both the medical bills and vehicle repairs. If you don’t have $100,000 in your bank account, the other driver involved in the accident could theoretically access your assets to fund their compensation. The appraisal could include your investments, your vehicle and even your home.

When you have liability insurance, you create a distance between the amount of money you owe the victim and your personal assets. While you may not have $100,000 in cash, much of that bill could be covered by your auto insurance policy depending on your policy limits. That’s why it’s always a good idea to consider increasing your liability insurance coverage when you make a major purchase, such as buying a house or a new car.

  1. It is required by law

Of course, the reason most drivers buy auto insurance is because it’s required by law to operate a motor vehicle. Almost all states require you to maintain at least two types of auto insurance, including the following.

  • Bodily injury civil liability cover: Personal injury liability insurance helps pay for the medical expenses of other drivers and their passengers following a collision. For example, if you are the victim of an accident resulting in a broken arm of the other driver, your personal injury liability coverage will cover all or part of the costs.
  • Material damage civil liability cover: Property damage liability insurance compensates anyone whose property you damage in an accident. For example, if you have a collision with another vehicle, this coverage will help pay for damages to the other driver’s car or truck.

Only two states don’t require you to buy automatic cover to drive — Virginia and New Hampshire. However, even in these states, you can only escape your insurance obligation if you prove your financial responsibility in the form of a cash bond or an annual uninsured motorist fee.

Keep in mind that none of these options absolve you of your responsibility to pay medical and repair costs for other drivers following an accident – they only allow you to drive legally without insurance. If you live in a state that doesn’t require car insurance, it’s still not a good idea to drive without a policy because you’ll be personally responsible for paying other drivers’ bills as a result of a collision.

  1. Legal support

Being involved in a traffic collision can be an incredibly stressful situation, and you may have no idea what to do after even a minor accident. When you have auto insurance and need to file a claim, you will have access to representatives who can guide you through the next steps. Your auto insurance representative can help you cover your legal bases (for example, helping you document the scene of the accident) as well as file a legitimate claim.

Can your insurance pay uninsured drivers?

You can buy a type of insurance called “uninsured motorist coverage” that helps you pay for expenses if you are involved in an accident with an uninsured driver. Uninsured motorist coverage can help pay for:

  • Loss of wages if you cannot work following the accident
  • Medical fees
  • Funeral expenses

In some states, you are required to have a special type of insurance called personal injury protection (PIP). PIP helps you pay for your own medical expenses, regardless of who caused the accident. This coverage also applies to drivers who illegally leave the scene of an accident during a hit-and-run. Keep in mind that PIP only applies to your medical expenses – your collision insurance, if you have one, handles claims you file to help pay for vehicle repairs.

In addition to the main benefits of having insurance, you may also be able to add additional benefits to your coverage, including the following.

Rent reimbursement: Lease Reimbursement Coverage helps you pay for transportation costs while your vehicle is repaired or replaced following an accident. You can buy this additional coverage from most major insurers.

Medical payments: In some states, you can purchase medical insurance that helps you and your passengers cover medical expenses after a collision. This coverage applies regardless of who is responsible for the accident.

Runners: A number of additional endorsements beyond these examples can help you pay for special circumstances. Some common endorsements offered may include first accident waiver and depreciation.

Exotic/Classic Car Coverage: Exotic and classic cars can be expensive, especially when it comes to repairs. You can purchase specialized insurance for these types of vehicles which have higher limits on the amount of money you can get back from an insurance claim.

Compare auto insurance providers

Benzinga offers information and reviews on the following car insurance providers. You may want to consider starting your search for coverage with one or more of the links below.

Frequently Asked Questions

Does it pay to take out insurance?

1

Does it pay to take out insurance?

asked

Sarah Horvat

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Yes, it is beneficial to have insurance, especially car insurance. If you are caught driving without insurance, you can face fines, have your license revoked or suspended, and even face jail time. These are just the criminal consequences of driving without insurance. If you are involved in an accident without coverage, you could face thousands of dollars in other driver’s bills.

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Benzinga

1

What does the insurance do?

asked

Sarah Horvat

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Insurance helps you pay for damages suffered under a specific set of circumstances. For example, imagine you cause an accident that results in the driver you collided with incurring $25,000 in medical costs. If you have insurance, your insurance company will pay this bill minus your deductible. If you are involved in this accident without insurance, you will be responsible for paying this bill yourself.

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