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Why Insuring Your Car is Crucial

Few people enjoy the monthly insurance deductions they get. Based on the variety of properties you own, you could be getting several monthly cuts on your salary going toward insurance. Car insurance is especially expensive, yet it is extremely mandatory. In 2015 alone, the National Highway Traffic Safety Administration reported over six million auto accidents. Over two million were injuries, and about 35,000 were people in critical condition. The chance of getting into an accident every given year lies at 3%. Even if you are a careful driver, an accident may be as a result of another carefree driver on the road, so you still need to protect yourself. Below are some of the reasons why you should have car insurance.

To be able to fix your car in case of an accidents

Accidents happen when we least expect, and they at times find us financially unprepared. Car repairs are costly. What may seem like a harmless fender bender may cause you to part with more than a few thousand dollars. A body shop such as San Diego collision repair can assess the damage done to your car so that you can get the correct insurance payment. In the absence of insurance, you will have to pay for the cost of repair out of your pocket. If you do not have ready cash, you may have to put your car away for some time.

It protects your lender

If you have used your car as collateral for a loan, you know that lenders require you to insure your vehicle. In case any unlikely event such as theft or damage happens to your car, its value decreases, which affects the collateral for your loan.  Your car insurance policy should include both collision and comprehensive packages. Collision insurance covers road accidents, while comprehensive insurance covers other incidents unrelated to accidents such as theft and vandalism.  If your car has tracking and anti-theft devices, you may end up paying lesser premiums for a comprehensive cover.

There are also other types of insurance available for car owners. These include medical and personal injury protection, which covers you and your passengers in case of an accident. Gap insurance is also another type of car insurance. It is an insurance type that bridges the gap between what you owe in a car and its real value. If what you owe is more than the value you would get if you sold it on short notice, then lenders require you to have gap insurance. When buying insurance, choose the best auto insurance companies.

To comply with state laws

You do not want to keep playing hide and seek games with state officials to avoid penalties because your car is not insured. For any accident that is your fault, the state expects you to take financial responsibility. To ensure this happens, you need to insure your car so that you can make prompt payments in case of an accident. This kind of insurance is the most basic, and it is knowns as liability insurance.

It helps you to cover costs as you await repair or purchase of your car

In case anything happens to your car, you do not have to worry about incurring extra costs such as public transport as you wait to buy another or to repair it. You can use the insurance payments you get to get your life moving.

It can supplement your health insurance

If your health insurance cover is not comprehensive, then the car insurance cover comes in handy in case of an accident. Car insurance medical coverage will pay for all the medical treatments required as a result of an auto accident. These include dental injuries, fractures, and more.

Protects you from the uninsured

Above all, car insurance cover assures your peace of mind when you are on the move. This is especially true if you get into an accident with a vehicle that is uninsured or underinsured.

Having car insurance ensures the safety of your savings. Saving requires great discipline, and you may not want all your money going into the purchase of a new car. Having insurance helps you to build your wealth without worrying about expensive emergencies.

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