Saturday, 18 May 2013

Why Auto Insurance Is Important

                        Most basically, auto insurance is smart planning it protects you, your vehicle and other people from any road accident you or your family might involved in. It provides compensation to cover any types of
damage to property, injuries to other driver, passengers or pedestrians. Think of auto insurance as a part of your financial plan because its a powerful tool that can help you.

1) For Start It's A Law :-
                        Yes it's a law. And in few states if you even want to register a vehicle you need to have auto insurance. To reduce the overall property damage costs and also to save the huge accident related medical bills going unpaid states requires vehicle insurance. So if you have insurance, your insurance company will absorb all these damages or injury costs because you pay your premiums. 
                If you think that just because the law requires it, its not necessary to do. Then think how much it will cost you or will make you suffer for breaking the law. Drive without an insurance papers and you get a ticket, that ticket it self will cost couple hundred dollars. And if you get another ticket, then you can loose your license and even get your vehicle impounded. This whole thing will cost you a lot of money and trouble. 

2) Liability Coverage :- 
                        Every driver of a motorized vehicle is required have a minimum purchase which is liability coverage. The charges of liability coverage differs from one state to other state and its important to have the minimum amount as required by law. If a driver drives around without basic liability coverage, he could be given a ticket, have their license suspended or even may be arrested. A state requires some levels of minimum liability insurance because it's this coverage that pays for the damage you do to others, including property damage and bodily injuries. It also pays for your legal bills if you cause an accident but only up to your liability limits.
3) Collision and Comprehensive Coverage :-
                           Collision coverage pays to repair your own vehicle in the event of an accident. Your car is considered "totaled" when the car repair cost exceed a certain limit of the car's value. At that point the insurance company take away the car and offer you the actual cash value of your car. When you buy collision coverage to keep premium costs down , you can raise your deductible. The higher your deductible is, the lower your premium. But you have to pay that amount from yourself.
            Comprehensive coverage pays for damage to your car that is not due to any car accidents also. It includes fire, vandalism, theft, collisions with animals and natural disasters.

4) It's An Investment :-
                            Vehicle are probably the second most expensive thing you buy after your homes so to keep your investment safe you need to insure it, as they are in much more danger of getting damaged since they are always moving about. If your vehicle is new or a expensive one, you should probably continue to carry liability and collision coverage on your vehicle. The cost of collision coverage is a little more than liability, and it will guarantee that you can repair your vehicle no matter what happens to it in an accident.

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