Benefits you derive out of your auto insurance

Imagine you were driving your car and suddenly you find another car coming at you on the wrong lane. Your vehicle gets hot and suffers severe damage. Now imagine the cost of repairing your car without having insurance. With no insurance, you will have to pay for the cost of repair yourself. Doesn’t it sound unfair, especially since the accident wasn’t your fault? Auto insurance not just supports financially but also protects your rights as a driver. However, auto liability insurance is mandatory in all the states of America.

Let us take a look at the auto insurance benefits to help you decide why you may need insurance for your vehicle:

• Liability protection: You may misjudge a situation and get involved in an accident. The cost of medical treatment and the cost to repair the other person’s car might quickly add up. If, you are at fault your auto liability insurance will cover the expenses and also protect you incase of a lawsuit.

• Personal Protection: When you are not at fault in an accident, you may turn the claim to the other party’s insurance company. If it turns out that the other party has no insurance, you don’t have to worry. You will still be covered under your own insurance policy. Your personal injury and property protection will cover you in such a situation.

• Collision coverage: No matter who is at fault in an accident, you can turn a claim to your insurance company in case your car collides with another car or an object. You may have to pay a deductible after which the insurance company compensates the rest of the cost.

• Comprehensive coverage: Your car may suffer damage due to theft or something other than a collision like an explosion, windstorm or even fire. Having comprehensive coverage on your auto insurance would prove beneficial. Remember, comprehensive coverage would not cover damage from collision.

• Protection from uninsured motorist: The uninsured motorist coverage on your policy provides protection in case you get involved with a driver who does not have insurance. It is illegal to not have insurance if you are driving, but even then some people tend to break the law. In such a case, you still need to get your car repaired and get any bodily injury treated. Uninsured policy would provide compensation for that.

• Protection from underinsured drivers: The cost of damage to your car may be $2000 but the at-fault driver’s liability limit may be only $1000. The balance amount of $1000 would go out of your pocket. But if you have underinsured motorist coverage, your insurance policy will cover for the remaining amount.

• Rental reimbursement: If you are hiring a car, you are as much responsible for it as you would be if you own a car. In a situation where you rent a car and get involved in an accident your rental insurance will provide coverage (if you have one).

Don’t get auto insurance just because it is illegal to drive without one. Assess your needs well and get insurance so that it can protect you financially when you need it. Getting only the state minimum is a waste of money since it may not cover properly. With the rising cost of medical treatment and car repairs, you surely do not want to pay out of pocket. Auto insurance benefits are many, so make your decision carefully.