Understanding the Importance of Car Insurance

23 June, 2020 Tom 0 Comments 1 category

According to Zebra’s 2022 State of Auto Insurance Report, the average insurance cost rose to $1,529 in 2021, a 3% hike from 2020. High premiums mean more consumers are looking for ways to save on car insurance. Generally, the top auto insurance will consider your driving record, where you live, age, credit, gender, and other factors when calculating your premiums. While you may not be able to control these factors, you can save significantly by shopping around.

You can get anonymous auto insurance quotes online to start comparing rates. A good auto insurance find will also offer discounts if you meet specific criteria. For example, your premiums can be reduced if you pay a lump sum premium for the year, insure multiple cars on one policy, bundle car insurance with homeowner’s insurance, etc. According to Bankrate, 2022’s average annual insurance premium is $1,771 for full coverage vehicle insurance. However, according to MoneyGeek, the average cost for high risk car insurance is $2,240. The rates you can get will vary wildly with each insurer. That’s why getting different estimates is key to getting a fair deal. Contact us today for all your insurance needs.

If you are a driver in the United States, you are legally obligated to have car insurance. The auto insurance application might seem intimidating at first, but if you do your research and compare your options, you’ll find that it can be easier and less expensive than you think. Affordable auto insurance companies are common and can usually be found online. You can get a car insurance quote from them, then shop around to other companies, both online and in your community, to see if the price and the offerings compare to anything else.

While you’ll want to look for affordable quotes, you’ll also want to make sure that those plans provide all of the protection you need, both legally and for your personal situation. Auto insurance broker quotes can range from very cheap to very expensive, so don’t feel like you need to take the first offer you receive. Instead, take your time and go through suggested plans carefully. You might find that something you thought was not right for you is actually a perfect fit for your car.

Whether you’re a new driver or an experienced driving veteran, the importance of car insurance affects everyone on the road. In fact, it’s a law in the United States that every car driving on the road must have the proper car insurance. The only state that doesn’t demand auto insurance is the state of New Hampshire, but even these drivers need to prove that they’ll be able to cover the cost of repairs in the event of an accident. If you don’t have the necessary auto insurance, drivers are slapped with a fee and could even have their drivers license revoked.

Car insurance is important for a variety of reasons, the first being that cars are inherently expensive. Every time you go on the road, you’re facing a slew of possible incidents that could result in costly fees. These include car accidents, traffic violations, and more. In the event that you’re in a car accident, your car insurance will often pay for the cost of repairing your vehicle — or they will be the ones to shell out for the cost of repairing the victim’s car if you’re the at-fault driver. By paying for car insurance now, you’re protecting yourself from the threat of high costs when you get into an accident later. This usually takes the form of an insurance payment on a month to month or bi-annual basis. While you might need to pay an insurance premium in the event of an accident, having insurance will help protect you when you actually get into an accident.

It might be frustrating to have to pay for an additional bill that you might never have to use. But looking at it like health insurance certainly helps. Even though you might not get into an accident this year or the next year, paying your health insurance will ensure that your annual checkups are more affordable and any major surgeries will be more achievable. For example, your insurance will cover the cost to talk to spine surgeons for consultations and you might just have to shell out for the affordable co-pay as a result. Even if you don’t see the benefits of paying for insurance now, knowing that it’s there will protect you in the future and give you peace of mind.

Car insurance claims and coverage will vary from accident to accident which is why it’s more important than ever to understand the importance of car insurance. Here’s why investing in car insurance is important and how it can help you following a car accident.

The importance of car insurance

Why is car insurance important? We’ve already covered the fact that they help you pay bills in the event of an accident but it goes much deeper than that. Here are some of the top reasons why the importance of car insurance should never be neglected.

It’s more affordable: Paying your insurance bills at regular intervals helps make you a better budgeter. Instead of being slapped with a bill worth thousands of dollars once you get into an accident, those small payments you have made up through now will help lower your final bill.

It’s less of a hassle: After a car accident, you’re going to have to do a lot: you’ll have to call an injury lawyer, go to the hospital, and work on recovering. The last thing you want to worry about is paying for someone else’s car or navigating the ins and outs of auto repair costs.

The aftermath of a car accident is time-consuming and more than a little stressful. By knowing you have an experienced insurance company in your corner, you can focus on the important things, like healing after your accident. Your car insurer can often deal with the cost of replacing or repairing your car while acting as the medium between your lawyer and the lawyer of the other person involved in your accident. While your insurance coverage might not help unrelated surgeries, like impacted teeth removal, they can certainly help with any tooth loss, back pain, or other injuries resulting from your accident.

It gives you piece of mind: Driving on the road can be scary. After all, you’re moving a two-ton vehicle at insanely high speeds with only a white or yellow line dictating where you can drive. When you rely on driver’s insurance, however, you can rest easy whenever you get behind the wheel. Should anything happen to your or your family on the road, you’ll be covered: that kind of peace of mind is priceless.

Car insurance basics

The importance of car insurance is far reaching. Some folks with multiple cars might want to bundle their plan and save money on insurance plans that typically cost more. But for those who simply want to get their car road-ready, there are basic policies that can get you started.

These basic policies will differ on a state by state basis. In most cases, you simply need to meet your state’s minimum liability and property damage coverage. That way, in case you get into an accident, you will have some sort of coverage, both for your car and any property damage you incur. This refers to residential property damage in the event you crash into someone’s home, but it also includes all aspects of property damage that is owned by the city you live in. Hitting a guardrail might not seem like a big deal at the time — after all, it’s there to serve that exact purpose — but the cost of fixing it will come out of your pocket if you don’t have the necessary insurance to cover it. Keep in mind that your policy does have a limit; once it reaches the extent of the costs allowed — typically $10,000 — you will have to pay for the rest of the property damage out of your own pocket.

Liability coverage, on the other hand, can be a little more tricky. Liability typically includes bodily harm that is incurred as the result of an accident. Most insurers utilize the 20/40 rule: this basically means that $40,000 is paid by the insurance company for medical bills, pain and suffering, etc. for all persons injured in the accident. You’ll usually sign up for these basic insurance offerings at the behest of car dealerships when you first buy the car. Otherwise, even driving off the lot could put the driver in danger.

Some insurance companies might also help you pay for a personal injury attorney. While this isn’t always the case, especially if you were the at-fault driver, this possibility can make the recovery process all the less stressful. If you don’t have an insurance policy that outlines agreements with personal injury attorneys, you will have to pay for this service out of your own pocket. However, if you’re the victim in a case, you might be able to have the at-fault driver cover the cost of your car accident lawyer fees.

Physical damage coverage

The importance of car insurance doesn’t end there. The above-mentioned insurance won’t necessarily cover the cost of fixing up your car, even if it’s a new one from the parking lot of your local dealer. As such, you may also need to invest in physical damage coverage. Physical repair damage is necessary for the event you incur major expenses of car repairs after causing damage to your vehicle.

Physical damage coverage typically encaspulates two options: collision coverage and comprehensive coverage.

Collision coverage is what it sounds like: if your car collides with another vehicle, a mailbox, a guardrail, or a property, the collision coverage will pay for it (minus the cost of your deductible, of course). This is a great form of insurance to have if you let your children or friends drive your car too. In the event that they get into a fender bender or scrap against a guardrail, your collision insurance will cover the cost of the repairs. Your rates might go up since you let your friend borrow your car, but it’s still better than not having coverage at all. As such, you should also ensure only licensed drivers are borrowing your car for small errands. You should never allow another driver to borrow your vehicle for extended periods of time unless they are a part of your insurance coverage. For example, it’s common for parents to list their children on their insurance. Keep in mind that this coverage might change in the event of drunk driving or other unsafe actions performed by you as the driver.

Comprehensive coverage is a little more far reaching. After all, we most often think of car accidents as being the main source of needing insurance coverage. However, cars can be damaged by a number of factors. These include inclement weather incidents, like hail, the threat of rodents eating your car’s wiring, and theft and vandalism. While you usually have to pay a deductible, the cost of fixing your car will be far less than if you didn’t have insurance in the first place.

Bonuses

Along with the basic coverage you can receive, you can also opt for a few extra gadgets, gizmos, and services to make your ride all the safer. The importance of car insurance isn’t lost on car dealerships and savvy customers: nowadays, you can buy roadside assistance services, accident forgiveness programs, and car rental insurance. If you tend to travel a lot for work, this last one is essential.

You can often purchase these extras as a part of your regular car insurance plan. However, accident lawyers might recommend investing in these bonuses on a case by case basis: a person who travels a lot might want roadside assistance but your average city commuter would be wasting money otherwise. Your insurance might also offer these services as a la carte options depending on your provider.

It makes sense to want to bundle these plans together. In some cases, you can even bundle your home insurance, health insurance, and dental care insurance into one plan to streamline your billing. If you are curious about what options are available to you, research insurance providers in your area.