No one likes paying for car insurance. Maybe you’ve been driving for decades and never needed it, so why bother? Like many things in life, it’s better to have it and not need it, then need it and not have it. People have always known this about car insurance. In the UK, a company whose name is lost to time reportedly issued the first car insurance policy way back in 1895. No matter what country you live in, it’s an important policy to have. Why? Here are ten reasons:
#1 Car insurance is often required by law
In many areas, car insurance is required. There are different tiers of coverage, but there is nearly always a mandatory minimum. This is the case for the United States; most states require insurance. In the European Union, anyone who registers a car must have third-party liability insurance. This insurance won’t pay costs like repairs to your vehicle, but it covers you if the accident causes damage to property or injuries to anyone besides the driver.
#2 Car insurance covers you if you cause an accident
Causing an accident is one of the more stressful things that can happen to a driver. When you’re the one at fault, you’re responsible for costs. Certain types of insurance like collision insurance or personal injury protection usually pay for costs regardless of who’s at fault.
#3 Car insurance helps pay for damages caused by “acts of God”
Insurance doesn’t only come in handy after accidents. Weather events like hail, ice storms, wildfires, and more can damage your car. Comprehensive coverage usually pays for what companies call “acts of God,” or events where neither you nor another driver is at fault. This type of coverage is also important should your car get stolen or vandalized. Depending on the policy, it might even cover stolen or damaged items in your car.
#4 Car insurance protects passengers
If you get into a car accident, insurance should pay for any injuries that passengers suffer. As we mentioned before, third-party liability is designed to protect any non-drivers involved in the crash. If you cause an accident and other people get hurt, a good policy will help pay for their medical bills. If you’re driving with passengers and the accident isn’t your fault, your insurance or the at-fault driver’s insurance should still cover passengers.
#5 Car insurance simplifies things
Insurance can be frustrating depending on where you’re from and how many policies you have, but following an accident, having insurance actually simplifies the process. Without insurance, you’d have to deal directly with the other driver or property owners. When you’re insured with a good company, they deal with pretty much everything.
#6 Car insurance can supplement your health insurance
We’ve talked about car insurance paying for medical bills. You might be wondering what happens if you also have health insurance. Car insurance can supplement treatments your regular insurance won’t cover. Damaged your teeth in an accident? A solid car insurance policy might offset some of the costs and take the burden off your dental insurance.
#7 Car insurance protects your assets
If you’re in an accident and don’t have car insurance, you’ll have to pay out of pocket. Depending on the accident, that could be a significant amount of money. If you own property or a business, a court judgment can start pulling from those assets. For drivers with a lot to lose, it’s a good idea to invest in car insurance with higher liability limits.
#8 Car insurance lets other people drive your car
Odds are, you won’t be the only one using your car. This is especially true if you have children who are driving or will soon be driving. If you’re related to the person or you live together, most car insurance policies let you add other drivers. What if a friend needs to borrow your car? Car insurance usually applies to the car that’s covered, so the policy covers whoever is driving it, including a friend. If your friend gets into an accident with your car but it’s not their fault, the at-fault driver’s insurance is responsible for costs.
#9 Car insurance protects businesses that own/use cars
There are many types of businesses that depend on cars. That includes companies that deliver items or go to customer’s houses to perform services (like home repairs), as well as ride-share companies, taxi services, and moving companies. Even if your business doesn’t use cars daily, you’ll still need insurance if the company owns any vehicles. Commercial policies are usually the best choice. This ensures that your drivers are covered and that your business is protected from financial complications if an accident occurs.
#10 Car insurance gives you peace of mind
When you have car insurance, you can drive without constantly wondering “What if…?” Maybe you don’t worry because you’re confident in your driving abilities, but there are many situations where your driving skills don’t matter. Another driver may run a red light, or, you might need to swerve into a fence to avoid hitting a child running into the street. There are also the legal consequences of not having car insurance. A good insurance policy buys you peace of mind and protection for a wide range of scenarios.