Why Do You Have to Insure Your Vehicle?

Insurance is the coverage by contract whereby a party to the contract agrees to guarantee another against loss by a specified peril. The basic tenet in insurance, no matter the insured item, is that damages will be covered by the insurer whenever it occurs as long as these damages are not deliberate.

Vehicle insurance, like the others, is the coverage that covers vehicles, for example, a car. There are advantages to securing your vehicles and risks when you do not. If you are still doubtful of its benefits, you should check out reviews about car insurance, and perhaps you might have a change of heart.

Concept of Vehicle insurance

Vehicle or motor insurance works on a “use it or lose it” policy. A yearly premium is paid, and if no accident occurs, you lose the premium amount paid for protection. Don’t be startled! You will get a No Claim Bonus, which is a substantial percentage of the premium amount paid. Some of the issues a comprehensive coverage should cover are.

  • Loss or damage to natural disasters
  • Loss or damage to man-made calamities
  • Third-party legal liability

It is always wise to use a reliable insurance company, especially one that offers assistance in getting quotes and the entire process. Reading more about Allianz Assistance may be helpful although there are other good ones as well. That said, let us have a look at the risks of not having your vehicle insured.

Risks of Not Having a Vehicle Insurance

1. Legal issues

In many states, driving without vehicle insurance is illegal. If caught, the penalty can range from payment of fines to seizure of the vehicle and, in some cases, ban from driving. Also, if an accident occurs and there is no vehicle insurance, you could be facing a steep penalty.

2. No financial protection

Without an insurance policy, you will have to shoulder the legal fees involved in such accidents, medical expenses of the injured, and lost income should they lose the ability to work. You might also be required to bear the cost of repairs to the damages.

With all the risks given above, the question of why you should have vehicle insurance can be answered. But to be explicit, the reasons for having a motor insurance is further discussed.

Why should I have my vehicle insured?

1. Car insurance offers financial protection

You are held responsible if you cause a car accident without an insurance policy. These costs may include legal fees, medical expenses, et cetera. The insurance coverage should help cover these costs.

2. Car insurance may be mandatory

In many states, having vehicle insurance is compulsory. Refusing to comply may incur severe penalties

3. Protection from costs of repairs

When damages occur to your vehicle through natural means like a hailstorm or man-made means like a burglary, the insurance covers the repairs. This, at least, gives you peace of mind when faced with such an issue.

These are some reasons why your vehicle should be insured. If you have trouble getting an insurance company or with their quotes, some sites compare quotes of different car insurance companies and give advice on the one you should use.

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