Number of cars in the road is increasing. This has led to increase in the number of car accidents also in recent years. As a result, the demand for car insurance is also increasing. Here are the major reasons why car insurance is so important.
1. It’s the law
In almost all states, it is the law to have car insurance. If you don’t have one you will have to face criminal fines. You can even lose your driver’s license and even get a jail sentence for not having car insurance.
2. Car is an important asset
Car is a very important asset for many people. Cars are essential for providing safe transportation service for your family. Car insurance will protect your car.
3. Covers cost of accidents
In case of a car accident, car insurance covers the medical costs of people who are injured in the accident with no fault of their own. It will give you financial safety and encourage you to recover soon.
4. Provide legal protection
People can sue you for a car accident even if it’s not your fault. Car insurance can protect you. It can even provide you an attorney to take care of the situation.
You will be able to find various kinds of car insurances. The premium you have to pay for the insurance is dependent on what the insurance will cover. For example, if you have any drinking problem then your premium will be high as the risk of having an accident is high in this case. Also, the clauses of the different insurance vary. Some insurance covers only medical bills, whereas others cover car repair cost, medical bills and legal costs. The insurance premium is also dependent on these clauses. So, the more benefit you have, the more premium you have to pay. You should choose an insurance whose premium you can pay comfortably.