The percentage of drivers without car insurance ranges anywhere from about 4% – 26% in different parts of the United States. Some motorists don’t want to spend the money. Others believe that nothing bad will happen to them. Nevertheless, it’s important to understand the full benefits of auto coverage if you really want a safety net that will help you to avoid total financial devastation. Auto insurance policies do much more than pay for repairs. Consider some of the following advantages before going another year without coverage:
1. Lawsuit Protection
If you cause a collision, you could face costly legal action. Another driver might expect you to pay for hospital treatments or repairs to a luxury car. You may also need to reimburse them for the wages that they couldn’t earn as a result of the accident. Auto liability insurance shields you from these massive expenses.
2. Repairs and Replacement
According to statistics, the average motorist becomes involved in at least three accidents during a 54-year period. Even a minor crash can easily result in repairs that cost thousands of dollars. If you carry collision coverage, an insurer will pay to fix or replace your car when this occurs. Always keep in mind that even the best drivers can’t always avoid poorly skilled motorists. Comprehensive policies fund repairs prompted by storms, fires as well as vandalism and more.
3. Lending Rules
Many banks and credit unions expect drivers to carry auto insurance. You probably face the same requirement if you lease a vehicle. This is true because lenders and car dealers don’t want to lose money when a car suffers heavy damage in a crash. They know that customers aren’t always willing to make car payments on vehicles that no longer exist. Consequently, the “repo man” could visit your home if you don’t buy insurance.
4. Health Coverage
Car insurance often pays hospital bills when drivers lack medical insurance or have inadequate coverage. Your state’s laws might force auto policies to cover injuries. An insurer may also fund long-term care and dental treatments associated with an accident. This could enable you to avoid paying thousands of dollars in medical bills or bankruptcy lawyer fees. Auto insurance can drastically improve your access to health care.
5. Passenger Protection
If an insurance policy covers a driver’s injuries, there’s a decent chance that it reimburses passengers’ medical expenses too. You won’t need to worry about an injured friend, family member or co-worker’s ability to pay hospital bills. Insurance eliminates the risk that a passenger will ask you to pay these expenses because you made a driving error that triggered a crash.
6. Professional Guidance
When a collision takes place, you can rely on insurance company personnel to help you take the right steps and return your life to normal as quickly as possible. Staff members will suggest desirable mechanics and assist you in the process of dealing with the other motorist’s insurance provider. You’ll benefit from their experience with similar situations, especially if you’ve never been involved in an accident before.
Don’t Neglect Your Auto Insurance Policy
Always keep in mind, auto coverage offers valuable financial protection for you, your passengers, your car, and fellow drivers. It’s your only safety net and protection against expensive repairs you can’t pay and medical bills you can’t afford. Not only that – auto insurance enables you to meet borrowing or leasing requirements. So remember, an accident can occur at any time regardless of how carefully you drive, but you won’t need to worry about facing tremendous financial hardship if you carry adequate coverage.