CORNER OF FRONT & BUCHANAN STREETS
P.O. Box 10-1526-1000 Monrovia, Liberia 1000
CALL US: +231 777 964 265
email: info@nicolinsuranceservices.com
+231 777 964 265
Why is auto insurance important
  • Comments: 0
  • Posted by: nicol

Why is auto insurance important

Suppose you are driving your car one fine evening. Suddenly your car gets hit by another car that changed its lane and had no business being near your car. Now because of them, you have to pay for repairing your car, and what’s worse, the other driver is insinuating that it was your fault that the accident happened. This is why people need auto insurance. So why is auto insurance important?

Auto insurance is important because car accidents are expensive. You not only have to pay to repair your car, but you also have to pay for the other person’s car if you are at fault. Having auto insurance ensures all the costs, including medical bills are covered and you don’t have to bear the burden of paying thousands of dollars.

Let’s take a detailed look at the importance of auto insurance.

Why should you have auto insurance?

Since the costs of a car accident are often too much for a person to handle, they need some kind of help dealing with it. Not everyone has someone who they can borrow money from, nor does everyone have relatives willing to financially help them out. So what should they do? Well, they should have car insurance, for a start.

But what is the importance of auto insurance? Let’s take a look:

1. It is needed by the law

In most countries, it is mandatory to have car insurance by law. Even in places where car insurance isn’t mandatory, you at least have to show that you can pay for the damages in the case of an accident. This is because the government wants to ensure both you and the other party are financially covered when an accident takes place.

2. To cover you in the case of an accident

One of the main reasons for having car insurance is to cover yourself when an accident occurs. As mentioned earlier, more often than not, you will have to pay a hefty amount of money if you are involved in an accident, even if you are not the one at fault. Be it the cost of repairing your car or the medical bills after the accident.

But if you have auto insurance, you don’t have to pay the entire amount. Most of your expenses will be covered by the insurance company. So it’s a very good idea to have car insurance, whether the law demands it or not.

cover you in the case of an accident

3. To cover the victim if you are at fault

You will not be the victim in every accident. Sometimes you might make a mistake that can result in an accident and cause damage to someone else’s car. Your car insurance will cover their damages also. You will have to pay for the damage you have caused to their car and their physical and mental health.

4. To cover if your car isn’t driven by you

You won’t always drive your car. It might be driven by your spouse, offspring, siblings, or friends. So having car insurance will cover if something happens while they are driving your car. If they are the victim of an accident, you can claim the damages from the other person. On the other hand, if the person you lent the car to is the perpetrator, your insurance will cover the victim.

If you didn’t have auto insurance to cover your friends or family, then you would have to pay for the car damage, their medical bills, the cost of damage for the other car, and their medical bills as well, which will set you back thousands of dollars.

5. To protect you from uncontrollable damages

Accidents caused by drivers aren’t the only reason your car can get damaged. Sometimes nobody can control what is damaging the car. For example, suppose your car was out in front of your house and suddenly a branch falls on your tree, greatly damaging the car. If you have comprehensive insurance, you will be covered by your insurance for the damages.

protect you from uncontrollable damages

6. To cover the leasing agent

If car lenders or leasing agents don’t have car insurance, the person leasing the car can go scot-free after causing an accident while the entire damage payment falls on the leasing agent. This is why lenders have to have gap insurance so that even if their car is stolen or destroyed while it was on the lease, they are covered for it.

7. To protect the passengers

In the instance of an accident, the person responsible not only has to pay for the cost of repair and medical bills of the victims, but they also have to bear the medical expenses of the passengers of their car. Along with the medical bills, they also have to bear the costs of any expensive item that might have been damaged during the accident.

Having auto insurance covers all that so that the person doesn’t have to pay every penny out of their pocket.

8. To provide peace of mind

One of the most underrated aspects of auto insurance is the peace of mind it provides everyone. It’s very stressful to go out with a car knowing that the slightest of mistakes can cause hundreds and thousands of dollars worth of damage. But having car insurance makes sure you won’t be stressed every time you go out with your car.

Can I get temporary car insurance?

Sometimes people have cars but don’t get the chance to drive them too often. They may study abroad and only come home once or twice. But they have to pay the insurance for their car the whole year round. That’s why sometimes people are on the lookout for temporary car insurance. These insurances are valid for about a few weeks or months, so the insurer won’t have to pay premiums all year round.

Now, the real question is, is temporary car insurance worth it? You won’t find big insurance companies offering temporary vehicle insurance. You can find temporary insurance offered by smaller companies, but even then you have to be extremely careful. A lot of these insurance schemes are fraudulent, so you need to do thorough research before buying temporary car insurance.

Final Words

When people buy a car and see that they are needed to have car insurance, they always think, “Why is auto insurance important?” Because everyone thinks of themselves to be the safest driver out there. Even if you are a world-class driver who has never gotten into an accident. You need car insurance for added protection. So you should insure your car as soon as you buy it.

FAQs

1. What is the most important part of auto insurance?

The most important part of auto insurance is the minimum liability coverage along with the property damage coverage determined by the country. Also, you must have car insurance to keep yourself legal to drive. Without car insurance, your license will be invalid and you will be fined.

2. What is third-party car insurance?

Thor party car insurance is the kind of auto insurance where the insurer will be indemnified if someone else causes harm to the insured person’s car.