Why is Car Insurance Compulsory? Do you Need Car Insurance?

When you meet with an accident and don’t have a financial source to repair your car or for your medical expenses, then it became mental torture for you and your family to handle the expenses. At that time, having car insurance is the best possible solution all car owners must-have. When you have already insured you and your car against any damage is a complete relief for anyone.

So, whenever you think of taking car insurance, the first question that arises in your mind is “How much car insurance do you need?” whether the amount of insurance taken is sufficient to cover the damage or not. Just make sure to take advice from an expert about the coverage so that you won’t face any problems in the future. Further, you can also refer to some quotes available online for taking car insurance.

Types of Car Insurance Coverage: 

There are various types of car coverage that covers the expenses or damage to different things. Every insurance is different from another, as these are several criteria of the insurance companies to cover or exclude the damage. With some insurers, you have to pay extra charges to cover the optional things, but some insurers by default cover all the damage that costs money. So, don’t forget to ask what they are covering in this before buying any of the insurance.

Here are some common coverages that are usually taken by car owners for their safety:

  • Collision Coverage: When your vehicle has an accident with another vehicle, or basically the damage in the car is due to the mistake of the driver then it comes under collision coverage. Collision insurance covers the repair or replacement expenses of the damaged vehicle. This is considered as important as well as compulsory coverage because it ensures the vehicle from getting damaged.
  • Liability Coverage: It is the most important and mandatory part of the car insurance as it covers the damage of the other’s property as well as of the injured persons. It helps to pay for the bodily damage caused to an individual, their medical expenses and also covers the damage caused to the property of others due to accidents.
  • Medical Payment Coverage: These days medical bills are so high, so it became a risk to your life when you suddenly met with an accident. To lighten us this expense you can take medical payment coverage, that covers your hospital visits, surgeries, various tests, and other medical-related costs.
  • Personal Injury Protection: This coverage is not compulsory in every state, as in some places it is optional but in other states, it’s required. It helps in reimbursing the medical costs, funeral costs, child care costs, loss of income results due to an accident and doesn’t cover the expenses of the damage caused to the vehicle. This coverage is commonly known as no-fault insurance or PIP insurance.
  • Rental Coverage: When you have an accident and your car is completely damaged that it cannot be driven. Then you just have to take a rental car or bus to reach a place in your expenses. This coverage reimburses the taxi charges or the bus fare that you have paid.

As this is an optional coverage, so you just need to have an insurance plan covering the damage of the car. Having an insurance plan will help your insurer to cover the rental charges.

  • Gap Insurance: This is an optional coverage option that you can take when you have purchased your vehicle on loan. It will help you to pay your car loan, in case your car is stolen or totaled. It is only applicable in case of damage when the total repair cost is higher than the actual value of the vehicle.
  • Towing and labor coverage: This coverage included the charges for towing your car when it stuck off in the middle of the road. It also covers the labor charges to repair your vehicle including oil delivery, tire change, and jump-starts.
  • Comprehensive coverage: This coverage provides the surety that if your vehicle is stolen, damage done by animals, any falling object, damage due to riot or got damaged due to any natural disaster like hail or storm, then you will get the replacement of the vehicle.

Why you need car insurance:

  • It is legal in all countries to have car insurance. If you don’t have insurance then you must get punished if caught by any legal authority.
  • It will help you to protect from penalties in road accidents. There are different penalties and fines of different states which you have to pay.
  • It helps you to reimburse the financial loss and pay the cost of your vehicle repair.
  • It also helps you to pay off the medical bills of the passengers.
  • Not only when it is your mistake in an accident. It also pays your medical bills when the mistake is of another driver.

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