Have you ever asked yourself why you should spend thousands of dollars on your car insurance yet you have never been involved in an accident? If you have, don’t worry because you are doing the right thing. Auto insurance provides you with financial protection in case you are involved in an accident. Accidents occur daily due to human error, weather conditions, and vehicle problems among other causes. Accidents can’t be predicted and no vehicle or driver is immune to an accident, which is why most countries consider driving without an auto insurance a criminal offense.
Importance of Car Insurance
Financial protection
Auto insurance is important when it comes to financial protection. The type of insurance policy that you choose determines what it covers. For instance, PLPD insurance won’t protect your vehicle from physical damage in case of an accident. However, it is not useless since it will protect you from the following:
- Bodily injury – This includes all the cost that is associated with injuries, pain, or death that can occur in an accident your vehicle is involved in.
- Property damage – It covers the cost of destroying buildings, fences, and other properties that you or another driver destroys in an accident.
- Medical payment – It provides injury protection that covers medical expenses for you and all the passengers in your vehicle.
In some states, this insurance also has the uninsured motorist coverage, which reimburses you if you are involved in an accident that is caused by a driver who doesn’t have any form of auto insurance. It is also important in a situation where a driver hits your vehicle and runs. Moreover, if you think that you need better insurance, go for the underinsured motorist coverage; it is important when the other driver has a basic type of insurance which is unable to cover a more serious accident.
Other Types of Insurance that Covers Damage
PLPD insurance can’t protect your vehicle from damages. If you need an insurance that covers all the damage that your own vehicle gets in an accident, consider the following options:
Comprehensive Insurance
This insurance reimburses you if your vehicle is stolen. It also covers your vehicle if you are involved in a collision or an incident. Examples include falling rocks or trees, fire, vandalism, or natural disasters, such as floods or volcanic eruption.
Glass Coverage
Many vehicles don’t have bulletproof windows and this makes glass coverage insurance important. It covers the damage to the windshield. Some policies also cover windows, glass sunroofs, and rear windows.
Collision
This covers your car in case you are involved in a collision with another car or inanimate objects, such as a pole. It also covers damage from rolling your car and damage from potholes.
What Car Insurance Doesn’t Cover
Insurance policies are meant for accidents and incidents. Don’t expect an insurance policy to cover normal wear-and-tear of your vehicle, engine failure, changing of tires, changing of oil, and other services.
Conclusion
You should consider having an insurance policy even if it is not compulsory in your state. An insurance policy, even the basic ones, offers financial protection if you are involved in an accident. However, car insurance will not cover for the normal wear-and-tear of your vehicle.
Featured Image: depositphotos/ Shutter_M
Posted on June 22, 2018
