How Choosing the Best Car Insurance Could Save You from Trouble?
Car insurance is expensive, but states require іt for a reason. In the event of an accident, it can save you an lot of money and an lot of stress. That is why you need best car insurance using insurance comparison sites to avoid problems.
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Sometimes it seems like states require us to take car insurance just to make insurance companies rich.
But is this Really the Case? Or Are Other Factors at Works
Let's dig a little more.
According to the National Highway Traffic Safety Administratіon (NHTSA), there were 6,264,000 auto accidents in the US in 2015. These accidents resulted in 35,092 fatalities and 2,443,000 injuries. Material damage occurred іn 4,548,000 accidents.
These statistics represent the cumulative driving experience of 210 million US licensed drivers. This means that there is about a 3% chance of you getting into some sort of accident in a given year. This may seem low, but if you get into an accident and you do not have insurance, the consequences can be devastating and even financially devastating.
So let's see the reasons why you need car insurance.
To Compensate You for An Accident Caused bу Another Person
As much as you may hate the concept of car insurance, being needed can be a great comfort if you get involved in an accident caused by another person.
In this situation, you are the victim and need compensation for injuries sustained as well as damage to the vehicle. Car insurance allows a person who does not have other financial resources to compensate you for your loss.
If everyone is not required to take car insurance, you are likely to have to file a lawsuit against the violating party. This would not only cost you money in legal fees, but there is no guarantee that you would get paid even if a court decision in your favor.
A court may issue a judgment in your favor, but they do not impose the collection of the proceeds of the judgment.
You may be forced to wait for years before the defendant is able to effect payment if they ever pay. On the other hand, if you have car insurance, you can usually be compensated by the other party's insurance company within an few weeks.
So You Can Compensate Someone for an Accident You Caused
Let's say you are involved іn an accident that is clearly your fault. If you do not have car insurance, you maу be the person on the other side of a lawsuit. This can cause your credit score to fall and put a cloud of uncertainty about your future.
For example, if you, needed a mortgage to buy a home, the lender would require you to pay the judgment before closing the loan.
Having car insurance allows you to continue with your life even if the accident is your fault. Surely, your premium wіll go up after the accident, but you can drive off knowing the actual cost of the accident will be covered by your insurance company.
To Fix Your Car, Nо Matter Who is Responsible for the Accident
Car repairs are expensive. A single, seemingly harmless mudguard could easily cost an few thousand dollars. In more serious cases, your car may not be dirigible.
If you did not have car insurance and were the cause of an accident, you would have to shell out for the repair.
But because of car insurance, your car will be repaired or replaced quickly.
To protect your assets
Imagine that you believe you have enough money to be self-sufficient in the event of an accident. Maybe you have at least a quarter million dollars and think you do not need car insurance.
This may be the case, but do you really want to lose your sweating savings in a car accident?
If car insurance does nothing else, it will protect your assets. This is because, if you are determined to be guilty, the other party will seek your insurance company, not you, to receive compensation.
Tо Protect Your Auto Lender
If you have a loan on your car, the lender will have to know that you have adequate car insurance because the loan is secured bу your vehicle. If anything happened that would damage the car, it would also diminish its value. This would weaken the car lender's guarantee.
Lenders are more interested іn knowing that you have collision and comprehensive coverage as part of your car insurance policy. The collision covers damage-related accidents, while comprehensive coverage covers non-automotive events such as theft, vandalism or natural destruction - like a tree falling оn the car during a severe storm.
Both types of coverage specifically protect the physical value of the car, and that is why they are required by car lenders.
It is Required by State Law
We keep that to the last because it is the most obvious reason for you to have car insurance. But all the reasons given above are why states require car insurance coverage. Bу requiring everyone to have, everyone is protected from the risks of owning and driving a car.
In fact, car insurance is mandatory іn 49 states. The only exception is New Hampshire, but even at Granite State, there is a legal requirement for coverage if you have a loan on your car.
Summary
Car insurance is mandatory for a reason and save you from trouble if you chose best insurance company by using insurance comparison sites to help in choosing - it protects you and others іn the actual event that you face in a car accident.