While we can try to reduce the risks of car accidents, we cannot fully eliminate the chance that they might occur or control the actions of others. When you do find yourself in such a situation, whether or not you are at fault, you might find it costly to reimburse the other party for damages or to pay for your own repair and medical costs. This is why auto insurance is incredibly important to have. Also known as car insurance, it is a contract between you, the driver or car owner, and the insurance firm for them to pay for your losses in an accident in exchange for a regular premium. Under basic coverage, liability is taken care of. With a higher premium, you can also choose to add the coverage of medical bills, property, collision, and more to your policy. Read on to learn why it is important to have auto insurance.
Covers Liability
If you are responsible for a car accident, you will be required to reimburse the other party for any costs associated with it. These could include medical expenses, legal fees, or the loss of income as a result of their injuries. With auto insurance, the liability coverage policy can help to cover these costs. Although this is often required by law, it is still important to check if you have an adequate coverage amount.
Mandatory in Most States
There are only two states where auto insurance is not mandatory, New Hampshire and Virginia. In every other state, you are required to purchase auto insurance according to the law’s minimum auto liability coverage limits. This doesn’t mean you shouldn’t buy auto insurance when in those states. In a case of an accident, you might find yourself paying out of pocket when you could have easily avoided paying by having auto insurance. You should also not only get your state’s liability coverage minimum requirement. Sometimes the costs incurred from the accident might far exceed a basic coverage limit. Paying a higher premium with better coverage can help you to prevent such situations.
Reimburses Medical Bills
Medical payments, or personal injury protection in some states, cover the medical expenses of the driver or passengers regardless of who the responsible party is. Depending on your coverage, you can expect your policy to help pay for medical expenses such as doctor bills, hospital visits, and even surgery. With the costly medical bills, it’s better for you to have medical coverage before it’s too late.
Protects You from Repair Costs
While the mandatory liability coverage can help pay for the damages caused to the other driver’s vehicle, it is also important to cover the costs of your own vehicle. Collision coverage, or basic cover, can not only help with car accidents with other drivers but also covers collisions with an object like a wall or mailbox. Other than collisions, comprehensive coverage can help pay for a range of situations such as theft, vandalism, fire, hitting wild animals, and many more. With comprehensive coverage, you won’t have to use your own money to fix your car.
