The Dangers of Not Having Auto Insurance
There are various types of car insurance available in the market. This will make it difficult for you to choose the most suitable one for you. However, there are certain factors that you must consider while making your choice. These factors are discussed in the following paragraphs.
In case of normal accident, your car insurance policy will provide coverage for damage to the vehicle due to collision with other vehicle. Besides, a comprehensive car insurance policy also provides cover for damage caused due to fire, storm, theft, malicious vandalism, earthquake etc. In addition to this, it also covers any third-party liability. Another advantage of car insurance is that it also covers loss or damage to the vehicle while in motion by rail, sea, air, highway etc.
Personal accident cover is one of the most costly types of car insurance policy available. It provides coverage for damage to your vehicle in case it is damaged because of another person’s fault. The other person may be you, a member of your family or a close relative. In such cases, the car insurance policy takes care of the financial losses suffered by you because of the occurrence. You will get compensatory damages and also be reimbursed for medical expenses caused to you because of the accident.
The advantages and disadvantages of commercial car insurance will depend on the type of insurance cover you select. In case of fleet insurance, the company takes care of the maintenance and upkeep of vehicles. In case of multiple vehicle use policy, you can insure multiple vehicles of a single owner. This will obviously offer you a lot of advantages.
However, this insurance may not offer you enough coverage if the vehicle meets with an accident caused by vandalism, theft or fire. In that case, you will have to purchase additional coverage. It is important to note that rental car companies usually provide the service of adding coverage to rented cars. They do so because they are confident that their insured vehicles will be safe. If you want to add coverage to rented car at your own expense, you should do so after consulting with the rental car company. The coverage offered by the rental car company can vary as much as the rental car company’s rates and offers.
Liability insurance coverage offers financial protection in the event that you cause bodily injury or property damages to another individual or his or her vehicle. In such cases, you are covered even if you are sued by the injured party. There are certain limits under liability insurance coverage. These limits are specified in the form of deductibles and maximum limits.
Collision insurance on the other hand, protects a car owner from damages caused by collision with an insured vehicle. You will need to pay more premiums when it comes to collision insurance compared to comprehensive coverage. Collision insurance also protects a car owner from damages caused by collision with uninsured motorists. However, this does not protect damage caused by collision with an uninsured driver who does not have sufficient insurance to cover the damage.
This form of insurance is also disadvantageous. Car owners who do not choose collision damage coverage will be responsible for repairing their own vehicle if the insured vehicle becomes a total loss. In case of an accident where the car owner’s vehicle is totally destroyed, the liability of the owner will also be called into question. Car insurance companies take advantage of such situations and take advantage of the vulnerable state of financial crisis.
The only advantages, this form of insurance has is that it protects the car owner from damages that can be charged against him/her in case of an accident. It also protects the owner from liabilities that stem from personal injuries or property damage due to a vehicle accident. But these advantages come at a price. This price is the high price that you pay for protection against damages.
Comprehensive insurance protects a car owner from damages that can come from all sources other than accidents. It provides coverage for damages caused by acts of nature as well as incidents involving human intervention. This form of insurance is usually taken up when you buy a new car.
As said earlier, there are advantages and disadvantages of having insurance policies. Some people think that it is a disadvantage when premiums are expensive. And for those who cannot afford these premiums, they think it is a great advantage because they can get discounts on their policies. But even with the advantages and disadvantages, car insurance companies remain in business because of the many customers they have. Car insurance companies are aware that not everyone will purchase the policy, and they have to compensate for the loss in business.