Having car insurance is typically a legal requirement. With the right level of protection, you’ll get financial compensation in case your vehicle gets damaged. Plus, it will also provide coverage for injuries to other drivers, pedestrians, or passengers.
Accidents do happen, so it’s important to know that you’re financially protected in the event that you get involved in one. According to the law, all motorists should be protected against their liability to other people. Plus, car insurance can also offer financial support in case your vehicle is stolen, vandalized, or gets destroyed by fire.
Of course, there might be certain instances in which you need to insure your vehicle. For instance, if you’ve declared your car off the road via a SORN (Statutory Off Road Notification) from the DVLA. Here are some of the reasons why you need to purchase a tailored car insurance:
It’s the Law
It’s a requirement in all states for motorists to carry car insurance. Otherwise, they’ll be subjected to huge criminal fines. And such repeated crimes could actually result in the loss of your driving license or even imprisonment.
Your Vehicle is Invaluable
For most people, their car is the second-most valuable asset they’ll ever purchase in their lives. Vehicles are essential because of the service they offer to families. That’s why it’s extremely important to purchase car insurance so as to protect such a valuable asset.
Your car gets you to work, right? If you opt to forgo auto insurance and then get involved in an accident, things can be extremely difficult on your side. With car insurance, however, your car repairs will be fully catered for and you’ll be able to continue making your daily trips to work.
Immense Accident Costs
Car insurance is typically designed to cover medical costs for people who’re hurt in accidents that are your fault. That also includes any injuries you might suffer as well.
Paying medical bills and car repair or replacement costs out of your pocket can really be devastating. But with car insurance, you’ve full coverage against such serious incidents.
After an accident, there’s nothing that can stop someone from suing you even if they’re on the wrong side. But auto insurance provides you with a buffer between legal claims and your pocket. And that includes providing an experienced lawyer to handle any legal matters stemming from a lawsuit filed against you over a car accident.
Auto insurance can also be helpful in the event that your vehicle gets stolen or vandalized. Because of this, most insurers offer a break on insurance if you regularly park your car off the street and in an enclosed garage where the instances of vandalism as well as theft are less prevalent.
The insured loss of a car can completely turn your life upside-down. And this is particularly worse if you’ve no money to purchase another vehicle. Getting to work can become really difficult, leading to loans and credit card use that could easily get out of control.
Peace Of Mind
Since car insurance helps in numerous areas, not having it can actually lead to some nerve-cracking times. You’ll just be praying that nothing bad happens. Research shows that contented employees are actually more productive work. That’s just one of the benefits that come with having peace of mind.
Without car insurance, you might end up being fined or even disqualified from driving. Typically, the maximum fine isn’t limited, plus you’ll get 6 to 8 penalty points on your license. As of now, the government is still reviewing penalties for uninsured motorists who kill or are involved in car accidents.
No Claims Discount
For every year you fail to make a claim on your auto insurance, you’ll earn a No Claims Discount. This type of discount is then translated into a cash discount, though a reduction in premium isn’t always guaranteed should there be a shift in your situation or the markets.
It’s always very important to inform your insurer of any car accidents you’re involved in, even when you don’t intend to make a claim. Different people have different insurance needs. And if your vehicle is particularly unusual, you may need a specialist policy like classic car insurance
How the Cost of Auto Insurance Is Determined
Generally speaking, there are different levels of coverage you can choose from, including liability, which is the minimum requirement set by the law but isn’t often the cheapest option and comprehensive, which is typically the highest level of cover you can get. Liability insurance covers injuries to other people as well as damage to their property. On the other hand, comprehensive coverage is designed to protect against damage to your vehicle and accidents involving other people. In addition, it can incorporate a courtesy car as well as legal expenses insurance, but this usually comes at an additional cost.
Your premium is often based on several aspects, including your age, your occupation, where you live, the type of vehicle you drive, where your car is kept, and whether you’ve committed any driving offenses. By paying a higher excess, you can significantly lower your premium. Young motorists in particular face high premiums due to the greater accident risk they usually carry. Because of this, some might be tempted to cut corners so as to get cheaper deals. Nonetheless, the IFED ( Fraud Enforcement Department) has warned drivers to be on their look for ‘ghost brokers’, who’re used to selling fake insurance. So, be sure to choose an insurer who is regulated by the FCA (Financial Conduct Authority).
Driving without auto insurance is illegal. To avoid getting problems, consider purchasing car insurance. This type of coverage comes with numerous perks and will make your driving smoother and more fun. Plus, it will give you the peace of mind you need to focus on other important matters. In the event that you are involved in an accident, all your medical bills, as well as injuries caused to others due to your fault, will be fully paid by your insurer.