Auto insurance may be mandatory in your state, but you may be wondering whether it is necessary.
According to the Insurance Information Institute, auto insurance refers to a contract between you and the insurer which protects you against expensive liabilities in case of an accident or theft.
In return, the auto insurance company will charge you a premium for covering the losses as stated in the contract.
The process is simple but you will first need to qualify screening and decide which auto insurance policy suits your needs.
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Now, the question remains: why do we need auto insurance? Is it really necessary to get a policy?
Below you’ll find 5 reasons why auto insurance is not only mandatory, but also beneficial.
Auto insurance brings long-term benefits
In the US, the total number of police-reported fatal crashes amounts to 40,000 each year. Not to mention that the most common types of accidents includes:
- Drunk driving.
- Erratic driving.
From the above facts, we could say that road accidents are a constant in this country.
Imagine if auto insurance were out of the equation, most Americans would in huge debts, if not bankrupted.
An accident is an absolute inconvenience. The amount of damages and losses varies depending on the nature of the accident.
If you got involved in a severe crash, you may end up paying thousands of dollars to cover property damages and injuries.
Not only does your car insurer protects you from financial losses, but also stands by your side to help you handle potential lawsuits by using your policy liability coverage.
If you get a policy that includes a competitive liability coverage, comprehensive and collision coverage, and medical payment coverage, you’ll be able to save thousands of dollars.
Having an auto insurance policy is convenient
Auto insurers offer you expertise in the event of an accident.
They will take the lead by talking to the other driver’s insurer, assist your claim, and find you a reputable auto repair shop.
In addition, car insurers are open to help you recover costs through your uninsured motorist coverage if you were involved in a crash with an uninsured motorist.
Can you imagine handling all these tasks with very limited expertise?
Insurers are great allies against other’s mistakes
When you are cruising along the freeway, there is a chance you’ll be exposed to novice or erratic drivers.
It’s in your best interest to work with your car insurer to ensure those negligent drivers don’t ruin your day.
Remember that people may mistakes. While you may be an expert behind the wheel, there are others who still make mistakes.
That’s when auto insurance companies address those scenarios.
Auto insurers incorporate health insurance on their policies
You may not have sufficient health coverage, but your auto insurance can compensate those costs with a personalized policy.
Whether you are a driver or a passenger, auto insurers know what you need to enhance your coverage.
Keep in mind that some states require personal injury protection by law.
Regardless of your health insurance policy, auto insurance can cover medical costs including:
- Crash-related injuries.
- Dental work.
- Funeral expenses.
- Prolonged nursing assistance while on rehabilitation.
Ask your agent for medical- related coverages.
Get a car insurance policy. It’s the law!
You certainly don’t want to break the law. Almost every state requires vehicle owners to get a minimum amount of coverage for their own protection, including New Hampshire.
In Florida, the minimum amount of coverage is:
- $10,000 personal injury protection (PIP), and
- $10,000 property damage liability (PDL)
Check with your agent about minimum requirements in your local state.
It goes without saying that driving without a valid insurance can result in expensive fines and driver’s license suspensions.