In most countries, having a basic type of car insurance is mandatory by the law, and for a good reason. By having the necessary liability coverage, you are making sure you can pay for every expense in case you are involved in an accident. And even if car insurance wouldn’t be required by the law, this should be a good enough reason to have it anyway. This article contains a little more information about why it’s a good idea to have car insurance.
Why Do You Need Car Insurance
The first and foremost reason to have car insurance is a liability. In case of an accident, the medical and material costs can reach staggering heights. And if you were at fault, you will be required to pay for everyone’s damages. If you don’t have the necessary insurance, this will be very hard to do, and you will have legal issues for years to come. Plus, the payout you will make to the other party will damage your credit score, and you might end up in a difficult financial situation as well.
Self-protection is another crucial reason for purchasing car insurance. Let’s say you were involved in an accident caused by another driver who isn’t insured. With the appropriate coverage, you can be assured that all your medical and material costs will be taken care of. However, if neither party is insured, you will need to go through a lengthy legal procedure to get compensated. If you own other property or a business – and you haven’t purchased car insurance – the insurance company of the other party can file a claim against these assets. By carrying even the minimum premium for car insurance, you can protect your property from this.
Types of Car Insurance Coverages
Depending on your area of residence, there might be different types of coverages that you are required to have. For example, having minimum liability insurance is usually a must, but property damage coverage is often added to it as well. The first one only allows you to pay only for the present and future medical expenses, pain, and suffering to the injured party. The latter will make sure the cost of repairing or replacing their vehicle is also included in their compensation. Not only that, but this premium usually also protects people’s other property, like houses or fences. Even if you cause damage to public property, this will take care of that payout too.
Aside from the basic types of coverage, you might be able to opt for some extra premiums like collision and perils insurance, ensured roadside assistance, and many more. Of course, adding all these options can become expensive, especially living in Canada. The Ontario-based team at https://www.staebler.com/ can provide you a little more insight into the different types of coverage available in this area. They can advise you on how to cover yourself for every possibility, so if you can avoid facing any legal and monetary difficulties, regardless of who was at fault in an accident.
How to Choose Car Insurance
The main deciding factor for your insurance premium is usually the type of vehicle you have. Because they can cause a lot more damage, larger cars are required to have higher insured amounts. Damage to an expensive vehicle will result in more costly repairs, which means it’s a good idea to cover it with a higher premium too. As older cars have a lower market value than new ones, these can be insured for a lower amount. However, keep in mind that if you cause damage to a newer vehicle belonging to another person, you will still have to pay for it. To avoid being sued, you might want to consider an appropriate amount for total coverage.
While choosing to add extras to your premiums definitely falls into a want category, it’s still a good idea to consider at least some of them. For example, newer cars are much more likely to get stolen. If this happens to you and you need to replace your stolen vehicle, having the right policy can save you from a lot of unnecessary expenses.
As you can see, car insurance is crucial to have for every driver. In case of an accident, it can help you avoid a lot of legal trouble and save an enormous amount of time and money, whether you have caused the accident or not. So, if you have been wondering if car insurance is a need or want – now you have your answer. After all, you have a lot of affordable options available, and with a reasonable investment on a monthly basis, you can have all the coverage you need.