If you have your own car, you probably have the mandatory minimum coverage called civil liability. But, it is also advisable to have full coverage against shock (collision), as well as protection for other damages. Some of these coverages apply indistinctly to any car you drive, while others are specific to the type of car you have.
There are many reasons why you should have auto insurance. The most common coverages are liability, collision insurance, and comprehensive or comprehensive. Making a monthly investment in a good policy can save you and your family future expenses. Here are some reasons why it is important to have auto insurance.
Protect your well-being
It is very important to have personal injury liability coverage included in your auto insurance. Insurance liability does not cover damage suffered by your person or vehicle, it protects you against damage that causes other drivers and passengers.
A traffic accident can change your life forever. But, in those moments, you must remain calm. For example: imagine that you are involved in a clash with Julio and you are responsible. Julio has $ 1,000 in medical expenses and the damage to your car is $ 3,000. You have liability insurance with limits of $ 5,000 / $ 15,000 / $ 5,000.
How does your coverage work?
Since you were responsible, Julio files a claim with your insurance company. The insurance company pays you $ 4,000 in July ($ 1,000 for medical expenses and $ 3,000 for damage to your car). You don’t have to pay Julio directly.
Now, imagine that you do not have auto insurance and you need to cover all these expenses from your bag. It is best to avoid accidents taking you by surprise , good car insurance may be the best way to do it.
You can also get uninsured motorist coverage in the event you collide with an uninsured motorist or runaway from the scene of the accident without taking responsibility.
Protect your family
When you take a road trip, it is best to plan everything in detail to cover everything you may need.
Medical expense coverage and personal injury protection cover passenger expenses in the event of an accident. If you were injured in an accident, this coverage can also help cover the expenses for you and your family due to the accident. Covered expenses may include hospital visits, medical bills, and surgery.
In the event of an accident, the most important thing is not to lose your cool, especially if you are with your family. This is very important to make the right decisions in those times of stress and take care of the well-being of the people involved.
For example: Let’s say you have an accident with your family member in the car and the property damage to the car costs you $ 20,000. Fortunately, you have a collision insurance policy with a deductible of $ 1,000 and a maximum limit of $ 25,000.
How does the coverage work?
You would have to pay the first $ 1,000 of the repairs, that is, the amount of the deductible. After paying the first $ 1,000, there is $ 19,000 left in repairs and auto crash insurance would cover the rest.
Protect your car
happy hispanic couple driving a convertible car with insurance
If you didn’t have auto insurance, you would have to pay out of your pocket to repair the car.
For example: You live in Texas and a tornado damages your new car. Repair costs are $ 2,000. Your comprehensive coverage insurance has a maximum limit of $ 1,900 and a deductible of $ 500.
So you would pay the first $ 500 of the repairs and the insurance would cover the remaining $ 1,500.
You can also protect your car with roadside assistance services. This coverage gives you protection in case your car breaks down or in any other emergency situation.
Protect your finances
If you don’t have liability coverage, you may have to pay legal fees, the injured person’s medical expenses, or your compensation for lost income. Limiting yourself to a single alternative does not allow you to define a custom budget.
When comparing rates, ask if you are eligible for discounts if you have more than 1 car, or no accidents in 3 years. If the company offers few discounts, you may still be able to find a lower total price. As long as you do a comparison search, you could save money.
Meet the loan or rental requirements
Does your current auto insurance cover the loan or rental requirements? If you don’t have a personal auto insurance policy that includes certain rental car coverage, you should consider one that does. For example, if you have a credit card that offers certain coverage for rental cars, certain types of vehicles may not be covered.
If your personal insurance policies provide adequate coverage, it may not be worth the additional expense. But if you decide to buy auto insurance that meets your loan or rental requirements, remember to ask: What does it cover? What drivers? What is not included?
Whatever your decision, when renting a car it is crucial to understand in the end what you are paying for and what you are responsible for.
With auto insurance that covers car rental reimbursement, you can drive without worry. The reimbursement pays the fees for the rental car while yours is being repaired due to an insurance-covered loss. Your policy will provide coverage for the rental of another car only if you have an endorsement on your policy. Under this coverage, the insurance company will pay up to the limit indicated in the guarantee for during the time of repairs or replacement of your car.
DUI and SR-22
An SR-22 is a certificate usually ordered by a judge, requiring people to have multiple driving violations or problems, and whose licenses have been revoked or suspended . An SR-22 means that you meet the minimum auto insurance requirements required by your state to drive and it is not considered auto insurance in and of itself.
Another option is non-owner’s insurance, which protects you in the event that you are at fault in an accident while driving a vehicle that is not yours. It is secondary insurance that covers damages that are much higher than what is included in primary automobile insurance.