Car insurance and why it is important

If you are a new driver, have never filed an insurance claim of you just bough your fist car, you might wonder what the purpose of making monthly payment is. Sometimes, the high insurance cost could be very frustrating especially because you are not getting anything in return.

Here is why you need the car insurance

Like most other insurances, auto insurance is like a game of chance. When you do not get the right insurance coverage, you will feel at a loss when you have to pay for an accident on the road. With insurance, you get what you paid for and each accident case can never be predicted. Insurance can protect you against lawsuits, especially when you are the one at fault.

There are many different insurance coverages available on auto insurance. The most important auto insurance coverage is the one you will need when you are at a loss. You never know what coverage that is since accidents happened differently under different circumstances.

The most important coverage is the state’s minimum liability coverage and the property damage coverage. Maintaining the car insurance coverage is important if you want to maintain your legal right to drive. Without auto insurance, you risk your losing the driver’s license and getting a hefty fine depending on what state you are from.

Liability and property damage coverage, protects you from the damage you may end up causing while you are on the road.  Some auto insurance policies list liability damage as bodily injury.

Some have it listed as 20/40 where the 2 represents how much you will pay for medical expenses of the injured party and 40 for medical expenses, pain and suffering (the real figures being 20,000 and 40,000 dollars.

Property damage is an insurance coverage that is responsible for damage to other people’s property.  For instance, during an accident, you may hit a traffic sign, gate or guardrail; your property damage coverage will pay for the damages (strictly the amount that was agreed on before you made the insurance payments).

Other important coverages include…

You need to protect your property too in case of an accident. For this you need to include the physical damage coverage during your insurance payments. This ensures you are protected against the major car repair expenses after an accident. It covers repairs to the vehicle regardless of what caused damage to your automobile.

The comprehensive coverage only allows you to make payment on vehicle damage that is caused by anything other than collision. This includes, but is not limited to the following factors; theft, vandalism fire and storm. In case of a head to head accident on the road, most drivers get the collision coverage. Some extra insurance coverages you may get from your auto insurance provider include roadside assistance, gap insurance, rental insurance, accident forgiveness, minor violation forgiveness and more.

Keep in mind that no car insurance is used to cover any mechanical repairs on your vehicle especially if it was caused by a fire or vandalism. It is worth knowing that auto insurance will no cover any mechanical repairs to your vehicle unless it is associated with the accident.