Reasons to Buy Car Insurance

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Carrying car insurance on your vehicle has always been the law. Despite being a law some drivers still run around without any insurance. Stiff penalties for driving without car insurance has made it foolish for anyone to drive without it.

If you have an insurance policy you know that any damage to your vehicle will be covered. Why is this important? You never know when an accident can happen, and if you are involved in an accident and don’t insurance, the costs can be extremely expensive and you may end up paying very expensive bills, you could even get sued by another driver if you are involved in an accident with another vehicle.

Now that we know why it is important to have auto insurance, you must understand how it works. Car insurance protects you against any financial loss if you get into an fender bender. You have a contract with an insurance company that will pay any losses due to you as defined in your policy. It should cover any property, liability, and medical coverage that is needed. Property damage will pay for any damage that is done to your car, including if your car gets stolen. Liability covers your legal liability in case injuries are caused to others bodies or properties. This is why liability insurance is mandatory to have, most states require liability insurance as the minimum insurance that a driver must carry or face stiff penalties, including a fine and sometimes a 30 day impound of the vehicle. The medical coverage is what pays for treating any injuries, rehabilitation, and sometimes lost wages and funeral expenses.

If you get a car loan to buy your vehicle you may be required to purchase insurance by the car dealer. It would not only be you taking a big loss if something were to happen to an uninsured car, your lender would also take a big loss. When you pay for your car insurance, you can pay in monthly installments. If you want to save money though, you can pay it all up front for the whole year.



Source by Slade F Tanner