Unforeseen events or accidents can leave you and your loved ones with a great deal of emotional and financial stress. Insurance is meant to ease that burden and provide a safety net for life’s unexpected turns.
When it comes to driving, especially, car insurance can cover the costs of repairs and damages that would otherwise drain your bank account. If you’re on the fence about taking out car insurance, below are six key benefits of having it.
1. You’ll Pay Less
One of the biggest advantages of having car insurance is the money you’ll save should an accident occur. Depending on the type and scale of the accident, most insurance policies will cover the cost of repairs. So, while it may seem like a pain now to be paying monthly into your insurance policy, it will be worth it if you ever encounter a fender bender.
According to the Insurance Information Institute, the average cost for an car insurance policy is around $900 per year. That’s siginificantly less than the repairs would cost in a major accident.
2. Damage or Loss is Covered
Another benefit to having car insurance is that any damage or loss is covered. In other words, your vehicle is protected in the event of an accident, fire, etc. You are also covered if your car is subject to theft, burglary, riots, or acts of terrorism. Other incidents such as damages incurred while in transit via air, rail, or water are also usually covered by your insurance policy.
3. It Prevents Devaluation
Some car insurance policies also help you prevent long-term depreciation of your vehicle. While you cannot predict or prevent incidents such as hailstorms or natural disasters, comprehensive car insurance will cover the losses you incur. Not only does this save you money in the long run, but it also helps you maintain the value of the car in case you ever want to sell it in the future.
4. You Get Personal Accident Cover
Car insurance also provides personal accident cover for a pre-set amount. The advantage of this is that it protects against events like permanent disability or death due to an accident. In other words, personal accident covers you, the driver, and not just the vehicle itself. This type of cover can also extend to other passengers in the car. However, this varies by policy so check with your insurance company for details.
5. It Gives Peace of Mind
One of the biggest advantages of having car insurance is peace of mind. Accidents can occur to even the best drivers and there is always the risk of natural disasters, storms, or other careless drivers. Knowing that you have car insurance means that you can rest assured that certain aspects of an accident will be financially covered by your insurance company. Otherwise, you could face hundreds or thousands of dollars in repairs and/or compensation.
6. You’re Safeguarded Against a Lawsuit
Not all accidents lead to lawsuits, but so much can happen in even a minor incident. Whether it’s injury or damage to personal property, having insurance means that you have access to legal support should you need it. Your company will also provide assistance with any legal claims that may be made against you.