There is a reason why third-party car insurance, unlike health insurance, is mandatory. A car accident puts you and third parties at the risk of death or injury. Yet, even if car insurance was not mandatory, the benefits of having one are hard to ignore. Comprehensive auto insurance protects your vehicle from damage, theft, and natural calamities. Here are the key highlights on why auto insurance is critical.
Protection Against Total Loss
Some risks can result in the total loss of your vehicle. For instance, a severe accident may cause your vehicle to be written off. If the total cost of repairs exceeds 50% of the insured amount, the insurer may prefer to write off the car rather than cater for repairs. Also, a vehicle may be stolen or consumed by fire. In all these circumstances, an insurer settles your claim to enable you to purchase a new car.
Coverage for Accidental Damage
Another essential benefit of auto insurance is that it caters to accidental damage. This benefit is significant when the damage incurred is very substantial. Given that an accident is an unplanned event, mobilizing enough resources for car repair is not always feasible. However, if and when an accident occurs, the insurer shoulders the burden of repairing damage to your vehicle.
Personal Accident Coverage
An auto insurance policy also offers personal accident coverage in the event of an accident. This coverage provides protection against permanent disability and death resulting from an accident. Notably, a policyholder can take personal accident coverage for other unnamed passengers in the vehicle. In such situations, the insurer will provide a pre-determined compensation.
Protection Against Liabilities
A car accident may result in damage and loss of property belonging to a third party. More so, accidents also cause physical injuries and the death of third parties. In such scenarios, the aggrieved party may file a personal liability lawsuit demanding damages for negligence. If you have auto insurance, the insurer covers such costs and protects you from legal penalties.
Protection for the Car Value
Typically, auto insurance helps prolong the value of an automobile. Many risks can cause unexpected damage to your car. For instance, a falling object like a tree or rock may shatter the car's windscreen or body. Such damage can result in the devaluation of your car. However, a comprehensive auto insurance plan covers repairs. In this way, one can restore the vehicle to a marketable condition and maintain its resale value in the long run.
With auto insurance, you have peace of mind that you are covered in case of car accidents and incidents. Talk to an auto insurance provider for more information.
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