There are many reasons why you should have car insurance, but the most important reason of all is that it’s the law. Most states, if not all, will not let automobile owners take to the road unless they have liability coverage. And if you are still paying off your car loan, your bank will require comprehensive and collision coverage as well. Here is a brief overview on the importance of auto insurance.
As stated above, the most important car insurance you need to have is your state’s minimum liability coverage. You risk losing your privilege to drive without this converge. Liability insurance is in place to protect you while on the road. If you were to be involved in a car accident, your liability coverage would kick in to pay for physical damage to your car, but also medical bills. If you were the cause of the accident, it would be your insurance company paying for the physical pain and damage caused by you to the others involved in the accident.
Other important areas allow you to protect our property. You can purchase physical damage coverage so you’re able to pay for any major expenses that come out of damage to your vehicle.
Comprehensive coverage pays for things such as storm damage, glass damage theft, fire, and vandalism. This is where your deductible will usually apply. Collision pays when your vehicle is involved in the collision, whether it be with another car, a mailbox, or a tree. Again, your deductible will apply here.
You may find that your car insurance agent will offer you a few different options fo your policy, which is generally inexpensive but highly important. These provisions include:
These options vary from insurance company to insurance company, so it’s best to check with your agent to determine the exact type of coverage you can purchase. Either way, don’t overlook the important (and legal) benefits of car insurance.
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