Importance of Car Insurance Cover

why car insurance is so important
why car insurance is so important



Auto insurance is an important topic that many buyers of cars fail to factor when buying a car. Its usually very exciting for first time car buyers when there purchasing a new vehicle and in most cases they tend to forget about car insurance . The emotions and excitements are usually very high and car insurance becomes a factor easily forgotten. When looking for a car in from such a dealership one of the things you will need to have after you purchase a vehicle is a car insurance. Driving a car anywhere in the world without a car insurance is most likely illegal and your potentially breaking the law. Car insurance importance cannot be underestimated since this protects you as the owner of the vehicle and other people out there. Accidents happen, someone might hit your car an object might fall from the sky, your car might be stolen, the car might catch fire, who knows what can happen the next minute? Auto insurance has the answer to all the natural and unnatural perils.

Why you need a car insurance. Importance of an auto insurance

So exactly what are the reasons you cant afford to miss to have an auto insurance cover?

1.Car insurance is a legal requirement

In all countries in the world a car insurance is a requirement that must be attained before you step on gas and access any public road. If you drive a car without an automotive insurance you risk a legal action since you would be breaking several laws under that country traffic rules.  Car insurance certificates are usually displayed clearly on the windshield of a vehicle which makes it possible for the traffic police to view and determine whether the insurance is still valid or not.

  1. Car Insurance protects your investment.

Besides fulfilling the requirements of the law you have to protect your car which its an asset and your investment as well. Car insurance usually is a way to protect your investment. Cars usually cost thousands of dollars and there one of the most expensive items an individual owns. If anything happens to the investment one will tend to suffer damages especially financial damages. If anything happens to your car you wont loose your money and you will be compensated.

3.Car insurance will protect you from costs associated with many perils .

Auto insurance ensures that you as the owner of the vehicle wont need to cater for the cost that arises when your car is involved in an accident, hits another car, knocks down an animal, and any other third party loss of property. Your also protected from any cost that may arise from any legal liabilities in case of a bodily injury or death of a third party .

4..   Personal accident cover

Another advantage of having a car insurance cover is you as the user of the vehicle has been protected from personal accidents that might make you permanently disabled or take your life. Since these are unforeseen situations one needs to have a car insurance since no one knows about what will happen next minute.



What are the different types of car insurance?

Now that we have explained why you need to have an auto insurance and the importance associated with a car insurance cover lets dive down to the types of car insurance available.  These car insurance covers might be different from what you are used to depending on the country your located but here are the general automotive insurance types available. Read our list of basic car insurance types and how they work.

1.Liability coverage

This is one of the coverage of automotive and many countries make it a requirement when driving any car on a public road. This coverage helps to cover damages that result from property and injuries and the owner of the vehicle is legally liable to pay from such damages.  This car insurance cover helps the owner of the vehicle in settling such claims.

  1. Collision insurance

Collision insurance is another type of car insurance cover that covers damages that are as a result of car damage from accidents with another vehicle or an object. The cover will help you repair your vehicle .


3.Comprehensive insurance

Comprehensive insurance cover just as the name suggests covers a wide range of risks, which might be theft, vandalism, weather events, natural calamities, accidents damages, third party loss or property and life, total loss and so forth.


4.Uninsured motorist insurance

When you take this car insurance cover uninsured motorist insurance your car is protected against uninsured drivers or situations such as hit and run accidents. This car insurance cover is  paired with underinsured motorist insurance.


  1. Underinsured motorist insurance

When s the driver just need to take a minimum liability so that you can save money then this underinsured motorist insurance cover is right one for you. When you take this insurance cover you protect yourself from an accident and your driver isn’t insured enough to cover the costs.


6.Medical payments coverage

Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.

Medical costs are one of the most expensive costs one can incur following an accident. When you have an auto insurance that covers medical cost regardless of who is on the fault can be one of the best savings plan.

  1. Personal injury protection insurance

When you have a personal injury protection insurance you are covered from expenses resulting from certain medical expenses, loss of income in case of an accident. Injury protection usually covers 80% of medical expenses.


  1. Gap insurance

Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft.

In many cases a car depreciates its value in a matter of months and the gap insurance might come in handy when the cost of the loan cannot be covered. This auto insurance loan helps owners of vehicles top up the balance owed on a car loan when a total loss or theft occurs.

  1. Towing and labor insurance

With a comprehensive car insurance cover towing and labor insurance are usually reimbursed when you do the work.

10.Rental reimbursement insurance

When an accident occurs, or your vehicle cannot move  rental reimbursement insurance comes in handy as they help you pay for a rental car to drive around till yours is mechanically sound.


  1. Classic car insurance

Classic car insurance is a type of car insurance where it caters for classic cars. These vintages and classic cars have unique needs and a classic car insurance would be best for such a vehicle.