Irrespective of whether you are a seasoned driver, a greenhorn, or have just become the owner of a brand new four-wheeler, signing up and making timely payments for car insurance can be a frustrating and onerous task. The high cost of insurance premium coupled with the burdensome feeling of not getting anything out of it in return can make you feel like incurring a sunk cost. But is it really not worth it? Read on to find out if that oft-discussed car insurance does have any purpose and whether it’s even necessary.
Owning a car entails shouldering a big responsibility, right from the payments to the upkeep. And investing in a good auto insurance policy can save you from incurring huge monetary losses due to accidents, car damage, lost car keys, and more. It protects you from footing the bill that occurs due to accidents or other vehicle-related incidents. Here is why investing in car insurance is vital.
Car Insurance is Compulsory by Law
You must have a Comprehensive Insurance Plan or at least a Third Party Only cover such as a Third Party, Fire & Theft Policy (TPFT). This will cover you and protect you against damages to your vehicle. Even if your car gets stolen, you will be covered by TPFT. Some of the reasons to invest in car insurance are:
- Pay Now & Save Later: Car insurance protects you and your family from huge expenses as by investing a small amount today, you can avert costly expenses in the future. You will be covered against collisions and liability for bodily injury if there is an accident.
- Protect Yourself & Others: The right car insurance policy safeguards not only you and your family but also your co-passengers as well as other drivers. In case of an accident, appropriate coverage takes care of any bodily injury or property costs that may arise.
- Save Time & Hassle: Car insurance will save you the headache of countless negotiations with property owners and other drivers associated with the accident, substantially cover the costs of replacing or repairing your vehicle, and provide help with vehicle towing.
- Gives You Peace of Mind: It is true that everyone makes mistakes yet sometimes another driver’s fault can become your problem. With the correct car insurance policy, you can feel protected and confident every time you’re out on the road as it safeguards you if an underinsured or uninsured driver rams his /her vehicle into your car.
Car insurance protects against physical damage, including theft, fire, vandalism, storm damage, and collisions with automobiles, light posts, trees, mailboxes, and other inanimate objects. It is required for roadside assistance and plays an extremely important role when you do not know who damaged your vehicle. However, car Insurance does Not cover mechanical repairs unless it was undertaken due to damage caused by an exterior factor like fire, collision, or vandalism. Also, bad workmanship and wear and tear are not covered by car insurance.
If you’re wondering about what happens if you need car keys replacement or car key cutting and does car insurance cover these costs, the answer is Yes. You need to opt for the Key Replacement Cover as an Add-on to the Comprehensive Insurance Policy of your vehicle. If your car keys are misplaced or lost, replacing them would be inexpensive as your Key Replacement Cover will bail you out.
Typically, a car insurance policy that covers stolen, lost, or misplaced keys provides coverage for the cost incurred due to car keys replacement, locksmith charges, and recoding the locks of the car and car key cutting.
Sometimes you are tempted to rethink about shelling out money for that ‘investment without return’ car insurance policy. As the years roll on without you ever having to make a claim, you start wondering whether you even need car insurance and why should you keep setting money aside to pay for these high premiums. But if you think deeply and consider the benefits, car insurance laws protect both you and other drivers out on the road. So, keep your all-important car insurance active at all times because one day you might be thankful for that seemingly ‘useless’ policy.