Car insurance is mandatory by law in different countries; if you don’t have it you could be fined. The fine could be hard to pay for many people and you get penalty points on your license as well. But, even if it’s not legal in your country, there are several reasons why you need to have car insurance. Auto insurance protects against accidents, terrorist attacks, earthquakes, etc.
Everyone driving a vehicle is at risk of being in an accident. Every year, hundreds of thousands of accidents happen around the world, causing damages to the vehicle and deaths as well. The insurance protects you in such situations and without it; you would have to pay for the damages.
If your car is ensured you gain peace of mind. You know you and your family won’t have financial troubles if your car faces an accident or if it is stolen. Insurance also protects you against a lawsuit. If you have mistakenly damaged another person’s property and he files a lawsuit against you, you won’t have to lose your home or a big amount of money. You will be provided with legal defense by the insurance company.
Car insurance can provide other benefits too including coverages like gap insurance, roadside assistance, and rental insurance. Different companies provide different policies with different coverages. You can choose the one that suits you the best, and it would protect you in hard times.
There are three types of insurance from which you can choose: third party, third party, fire and theft, and comprehensive. The first level, third party, is the minimum required by law in different countries. It only covers injuries to other people and damages to property. It is comparatively cheaper, but still, it can cost a good amount of money in different countries. The second level, third party, fire, and theft is similar to the first level, but it also covers expenses if your car is stolen or damaged by fire. It may cost more but it also provides more benefits. The third level, comprehensive, provides the most benefits.