You’ve just bought a car and are happy that months of saving and research have finally paid off.
You have this fantastic new vehicle to drive around and show off to your friends and family. But before you can start cruising around town, there’s one more thing to do: get insurance on it.
That’s right—if you don’t have car insurance, you could be putting yourself in legal trouble if anything happens to your vehicle. And let’s be honest: if something happens to your car, it will not be cheap. Also, car accidents mean danger to your life – why would you want to put yourself at risk?
Car insurance can protect both your vehicle and your life. You can get coverage for various situations, including accidents and vehicle breakdowns. Read on to learn seven reasons you should get car insurance today.
It’s the Law
While car insurance is legally required in most states, don’t ignore getting a policy. If you are involved in an accident, you could be sued for a lot of money. It is better to be safe than sorry and get car insurance. It is mandatory by law and if you are found driving your vehicle without a valid auto insurance policy, or with an expired one, you will have to pay a penalty for it. Your driving license can be temporarily or even permanently revoked if you are found guilty of driving your car without valid insurance multiple times.
In Maryland, for instance, the following penalties are imposed on uninsured or underinsured drivers:
- Loss of vehicle registration privileges along with confiscation of license plate
- If you are caught driving without coverage, you would have to bear an uninsured motorist penalty- $150 for the first 30 days of your policy lapse period, and $7 per day for policy lapse over 30 days. The maximum amount of annual fine is $2,500.
- Restoration fees of up to $30 are to be paid before being allowed to apply for new vehicle registration.
- If you are convicted of falsifying your insurance policy, you can be fined up to $1,000 or up to 1 year in jail. Providing fake insurance is considered a more serious offense in Maryland’s auto insurance regulations.
Hence, it is crucial that you are covered under a valid plan of insurance that meets your state guidelines and allows you the freedom to drive without fear of hefty fines and serious penalties.
Accidents Happen
Accidents can happen no matter how careful you are on the road. If they happen, car insurance can help cover repairs or medical bills. Even if the accident was your fault, your insurance could help pay for damages. So it’s always good to have an emergency. Let’s understand this with the help of an example:
Suppose you get into a car accident where a speeding car crashes right into you from another lane. It is a common type of car accident that happens every day. Suppose the driver and the passenger get seriously injured, there can be two cases:
- Without valid auto insurance, they can sue you for 100% of their medical expenses along with car repair charges, which obviously can be a lot. Also, not to be ignored are the costs that you would have to pay to get your own vehicle repaired.
- By paying just $1000 for insurance coverage, you can save yourself from so much financial as well as legal trouble. Policies like a 50/100/50 insurance policy would give you immense peace of mind along with just protection.
- The policy means a payment of $50,000 for bodily injuries per person, $100,000 for bodily injury per accident, and $50,000 for property damage liability. With such heavy coverage, it is highly unlikely that you would ever have to pay out of your pocket. That is why the government makes auto insurance mandatory. It doesn’t just financially secure you but mentally as well.
Car Repairs Can Be Expensive
Repairs can be costly if your car is involved in an accident. But if you have car insurance, your insurer can help cover the cost of repairs. And in some cases, they may even cover the cost of a rental car while your car is being repaired. So having insurance can help reimburse or pay for the costs upfront.
To Compensate You for An Accident Caused By Someone Else
If you are hit by an uninsured driver on the road, it becomes really difficult in recovering the expenses you are entitled to. The legal battles consume a lot of time and during that, you have to bear all your medical expenses and costly vehicle repairs from your own pocket. That sometimes is not feasible or possible.
The reason why the government puts so much emphasis on getting auto insurance is to give you the ability to pay for other parties’ damages at the time of the accident. That is why it is also called liability insurance. For instance, in this case, the other party is liable to pay for all types of damages such as medical (hospital bills) and property (car repairs cost).
The other party should be able to compensate you for the accident caused by them. Good auto insurance handles all the headaches and grants you immense peace of mind by securing you and settling all your liabilities.
To Get Your Car Fixed — No Matter Who Caused The Accident
Getting the car fixed is an extremely expensive affair these days, over and above that if you have no insurance coverage, it can be a mind-boggling affair. Hence, every driver these days needs liability insurance but getting comprehensive and collision insurance is still a choice.
Let’s first understand the meaning of both terms-
Comprehensive Insurance: Under comprehensive, apart from road damages, the insurance provider also pays for damages that may occur due to natural calamities, fire, acts of terrorism, strikes, theft, falling trees, and more.
Collision Insurance: it helps to recover the cost of repairing or in certain cases replacing the vehicle if you cause an accident. It also helps in cases where the other driver’s insurance doesn’t cover the cost of your repairs.
So, whether or not you should invest in the collision and comprehensive insurance is again a matter of choice. Yes, it brings peace of mind and also helps you in sharing financial burden but it isn’t easy on the pockets. If you take both, you will be required to add $ 500 more to your sixth-month premium cost.
If you think you have enough savings and a ready contingency fund that you can use if your car gets seriously damaged or even worse if the need for replacement arises you can meet that as well then go ahead, and dodge it all you want. But if you do not have a few grand to spare at the time of need, it’s better to pay for collision and comprehensive insurance upfront.
To Protect Your Assets
An auto insurance policy keeps you mentally safe by giving you an assurity that all your assets are safe and not vulnerable to any legal ongoing case.
For instance, you met with an accident and the total amount of payable charges amounts to $40,000 but you only have $10,000 in your bank account. This means the other driver’s lawyers are eligible to legally seize other assets in your name to recover for the damages. This could include everything, from your home to your car, your personal investments, and more.
Having an auto insurance policy saves you from such troublesome situations by taking care of finances and other liabilities. It keeps your family financially secure by not touching your assets and providing much-needed financial assistance at the time of claim settlements.
Hence, driving your vehicle with valid vehicle insurance is a must. Just like when buying a car you lay extreme emphasis on which model, color, and features to select, the same level of scrutiny should be exercised for buying auto insurance as well.
To Help Cover Your Passengers
To keep your liability at its minimum and to ensure your finances are well protected, you must have valid vehicle insurance. It helps in paying third-party damages and saves you from heavy financial troubles.
If you are convicted of an accident, you stand liable for your co-passengers medical bills and other losses, if any, as well.
Consider this example: you are driving your car with your friend and it gets involved in an accident. If the accident results in damage or loss to the property then you will be held liable for paying off his medical expenses along with other financial losses that occurred due to his loss of property.
But if you have valid auto insurance, it will save you from financial trouble by handling all the medical expenses along with taking care of additional expenses incurred due to the loss of property.
Auto insurance coverage saves lives by extending a genuine hand of help in a time of need.
It Brings Peace Of Mind To everyone
Insurance is a safety net that protects you from the uncertainty that comes with driving on the roads. It helps you in safeguarding yourself so that you don’t suffer due to other driver’s negligence while driving.
Imagine leaving the house with a constant thought in mind that if unfortunately, you get into an accident you would have to pay hefty charges to save yourself from legal trouble. It would be petrifying, to say the least.
Therefore, if every driver on the road drives with a valid auto insurance policy, it would bring peace of mind to everyone and help you avoid the consequences of legal and financial convictions.
You Could Be Sued
If you cause an accident and someone is injured, they could sue you to recover damages. And if they win their lawsuit, they could get a judgment against you for a large sum of money.
That money could come out of your bank account or home. If you have car insurance, your insurer can help pay for damages. So it’s worth having in case of an accident. Insurance brokers MD can help you.
Your Car Could Be Stolen
If your car is stolen and not covered by insurance, that would mean all your money has gone down the drain. You will still be responsible for the loan. So it’s important to get comprehensive coverage on your car insurance policy if your car is stolen.
Your Car Could Be Damaged by Weather
It can be expensive to repair if your car is damaged by severe weather, such as a hurricane or tornado. And if your car is totaled, you could be left with a hefty bill. But if you have comprehensive coverage on your car insurance policy, your insurer can help pay for the damages.
You Could Hit an Animal
If you hit an animal while driving, such as a deer, it can cause serious damage to your car. And if the animal is big enough, it could even total your car. So it’s always good to have car insurance if you hit an animal while driving.
Final Word
These are some reasons why you should get car insurance. But there are endless reasons why it’s a good idea to have insurance. So if you don’t have your car insured yet, be sure to get it today. It could save you a lot of money and hassle in the long run.
Protection and peace of mind are the primary purposes of having auto insurance. So, no matter if your state has made it a mandatory affair or not, it should always be there. It saves you from getting shattered under the heavy costs of accident claims. Even if it’s not your fault, it can cost a fortune. Keep your peace of mind intact at all times by buying a policy that protects you from legal battles and financial burdens.