When the times come to buying a car, we spend a lot of time researching the latest models, the coolest color, the jazziest features, and whatnot. But what we forget or overlook is to consider the fact that we also need to have car insurance.
Your car insurance is as important as having health insurance. It is not only a legal requirement but with the right coverage, it provides you with financial protection.
We will discuss everything regarding car insurance in this post and will help you determine why it is necessary to have one. Let’s get started.
The importance of car insurance
Accidents happen, and because of that, you are liable and responsible for any damage you cause. Thus, car insurance will provide cover for expenses in the event of vehicle damage or harm to passengers, pedestrians, or other drivers.
All car owners must be insured against their responsibility and liability to other people since your car has the potential to cause material or physical harm. It would help if you carried enough insurance to cover the expenses of these damages.
Apart from this, car insurance provides financial support if a natural calamity destroys your car, is vandalized, or is stolen.
What if you are not insured?
There are many consequences of not having car insurance. First and foremost, driving without insurance is illegal, and for that. You could be fined by the authorities or disqualified from driving.
If you don’t have car insurance and your vehicle causes an accident, then you might go to jail for that, followed by heft fine. Other parties may sue you for causing the damage, and without insurance, you cannot defend yourself from paying the fine or even going to jail.
While the maximum fine you will have to pay for driving without insurance is infinite. You will also receive penalty points on your driving license.
The government is always reviewing the penalties and vehicle owners who are uninsured and have killed, involved in rash driving or have caused accidents. So, the authorities and police have the power to seize an uninsured vehicle and even destroy it if necessary.
How does it work?
It protects the owner against the legal liability of accidental damages causing death or permanent injury of a third party, including damage caused to the surrounding property.
It protects your family’s future in case of an unfortunate event like your death due to accident or permanent damage. You get coverage for any damage caused to you while traveling, mounting, or dismounting from the car.
It protects you against human-made calamities like terrorist activity, strike, riot, theft, burglary, and other damage caused in transit.
It protects you against scenarios outside your control like natural calamities, such as landslide, cyclone, storm, hurricane, typhoon, flood, earthquake, and lightning, among others.
The Bottom Line
Now you know why having car insurance is essential. It is time for you to visit your nearest insurer and get your car insured. We recommend that you ensure that your insurer is regulated by the law and follow best practices.