When you buy cars, it seems like the word insurance is already linked to it. However, do you really know why it is needed to have car insurance? Well, if you continue reading below, you will know some of the reasons as to why car insurance is deemed important to have.
Reasons to Have a Car Insurance
- For state laws. Some states in the USA requires having car insurance. The reason why some states implemented a mandate on insurance policies is to make sure that when you cause an accident which leads to personal injury or property damage, you will be able to pay it right away.
- For loan or lease requirements. For car finance lease arrangements, some lenders would want the lessee to get collision and comprehensive coverage insurance. For this, the primary reason as to why lenders implement it is to protect their investment since during the lease term they are still the owner of the car.
- For the protection of your finances. Without an insurance policy, if ever you cause an accident, you surely would be burdened by the expenses that you are going to pay. However, if you have already purchased the policy then your expenses can be reduced to a minimum.
- For the protection of your passengers. When getting yourself in a car accident and you have a passenger with you, you will be able to pay for the medical expenses such as the doctor’s bills and surgery.
- For your own protection. If you think about it, insurance policies are all supposed to be for your own protection; it’s just that sometimes you first satisfy your obligations to them first before your interests. In addition to that, if you are hit by a driver that hasn’t been enrolled in any insurance policy, you can use your own to cover your medical bills. Remember that even though insurance is required in some states, there are others which have it on an optional basis.
There may be other reasons as to why you will have to have car insurance but it can’t be denied that those are one of the most common reasons why. Now, since you have had some knowledge on its importance, you can talk to a local agent to know more about it and the coverage of each policy. And if you are a still planning to buy a car, you can talk to your dealer directly about insurance.