You need to have car insurance so that it can assist you get back on the road quicker after a traffic collision. Car insurance also ensures that you save some money on costs for repairs. In the case of a stolen car or an accident, you can rest assured that a car insurance can be there for you.
The government mandates car insurance policies for many good reasons. For example, if you are at-fault party, the other party can sue you for medical expenses, car damage, and many more. Without car insurance, these expenses can come from your pocket. This page explains why you should get car insurance.
A car accident involving an uninsured driver
No doubt, a car accident that involves an uninsured driver who was at fault can be devastating to everyone. The accident victim may not have access to the immediate money they need for their medical expenses and repairs to the car. As a result, you end up using your hard-earned cash to manage these expenses.
The at-fault driver also has to wait for the personal injury attorney to get involved. The medical expenses and damages can significantly affect the finances of the party at fault, especially when the court demands compensation for the victim.
Worse still, the government has to assign a public attorney, tax money, and courtroom time for the legal battle between the drivers. As you can see, many people can be affected by an accident caused by an uninsured driver. Perhaps, the only winners in such types of accidents can be the lawyers.
Unfortunately, this entire situation can be avoided if the uninsured driver simply paid a car insurance policy. This is the reason why the government mandates car insurance.
Also, remember that if the uninsured driver caused a car accident, it can sometimes take ages to get the money you deserve. Meantime, you may be paying the bills for medical payments, car repairs, and more.
Car insurance covers
You need to have at least compulsory third party insurance to register a car. This type of insurance covers the injuries you cause to others in a car accident. This means the insurance can protect you from financial liabilities in lawsuits or compensation claims that may come. But this insurance doesn’t cover damages to your vehicle or property. This is why you need to have an additional insurance option.
A good insurance option is comprehensive insurance that can cover damage to your vehicle due to an accident like theft, vandalism, and many more. This is especially important if you cannot manage to pay your money for a replacement or repairs after a serious car accident.
Comprehensive insurance can prevent you from having a huge financial burden. Because comprehensive insurance policies tend to differ between insurance companies, you need to compare quotes so that you can get the right one. You can research insurance companies online and ask for quotes from at least three insurers. Alternatively, you can use insurance brokers and agents to get these quotes. Regardless of which way you want to get an insurance quote, make sure that you choose the one that meets your needs.
The different types of car insurance
Yes, that is right, there are different types of car insurance that you need to learn about in order to know what particular car insurance is covering.
In general, there are three types:
The first one refers to the fully comprehensive
The second one refers to the third party covers
And the third one refers to the third parties, fire and theft protection
Understand the fully comprehensive level of car insurance
The highest level of insurance that a person can have is this one because it truly covers everything including the person, his car, and any other people involved in some accident. This car insurance type will protect you by paying damages to your car, your medical treatment, legal expenses, and even accidental damage.
This means that you can claim for all types of repairs, accidental damages, and also vandalism in the case someone scratches your car. However, you should know that car insurance does not cover damages on the car that you made while driving. It would be best to check your own insurance policy information because they can differ in some terms. One more thing worth mentioning is that although this type of car insurance is providing the most cover level, it is not necessarily the most expensive one.
Understand the third party level of car insurance
This type of insurance cover is the minimum one that you can get legally. In general, this insurance is covering the costs of injuries and damages that you caused to other people or their property. However, it does not provide you any type of protection in case your car is stolen or damaged. Although it provides minimal protection, it does not mean that this is the cheapest car insurance option.
Understand the third party, fire, and theft levels of car insurance
This type of insurance is going to protect you in case your car is damaged by fire or stolen. However, just like with the previous car insurance type, it does not necessarily mean that this is a very cheap car insurance option.
How you can take advantage of no-claim bonuses?
Many people actually do not know that they can benefit a lot in case they do not get claims. We are going to explain everything you should know about no-claim bonuses and how they are working.
In the shorter term, a no-claim bonus represents the discount that the insurers offer to the individual when he or she does not claim on the policy. Best of all is that the discount will increase with each year that they do not make any claim. This discount can become very generous, and it can range from 30% after the first year of signing the policy to more than 65% after the period of five years after signing the car insurance policy.
In case a person experiences some type of accident and he gets a claim for it, what will happen is that he will lose a no-claim bonus that is worth two years. Additionally, the premiums are going up.
One more thing that it is important to know is that when a person has more than one accident in a year, there is a big chance that he can lose all of the no-claim bonuses. In case a person does not make a claim, it is still essential that he tells the insurer about the accident because if he reject to do this, all future claims will be rejected as well. A person is generally allowed to make one claim on a yearly bases or two claims in the period of three years, and he would not get in the situation of losing a no-claims bonus.