Insurance provides many benefits to individuals, businesses or community groups. Primarily, insurance provides a safety net to the insured against any the risks that may be faced. There are many types of insurance including life insurance, agriculture insuranceand auto insurance among others
Auto insurance is a necessity for every car owner. The potential costs to incur in case of an accident are just too huge to risk being without an adequate coverage. There are many types of car insurance policies, which often confuse car owners on the best to choose to suit their budget and preferences.
Auto insurance protects a car owner from financial problems in case of an accident.
Some of the main benefits of auto insurance are
-
Provides financial protection against driving errors. In case of an accident your insurance company will provide compensation depending on your cover
-
Provides benefits to survivors when an auto accident results to death
-
Peace of mind- Having auto insurance provides a sense of security knowing that you have somewhere to turn to in case of a driving error
-
Auto insurance can be used as collateral for obtaining credit. Many banks accept insurance as guarantee when applying for a loan
-
Savings- The monthly premiums paid can act as savings. Different companies offer different offers for example new car discount that you get after you purchase a new car, among others
-
Auto insurance is required by law and risk arrest if found driving a non- insured car
Types of auto insurance
1.Liability insurance: Covers the costs of repairing any property damaged in the accident as well as hospital bills in case of any injuries
2. Collision insurance: Covers your car and in case of an accident, the insurer will pay for any repairs needed for your car. If the car is badly damaged, the policy will pay out the total value of the car.
3. Comprehensive insurance: Covers weather damage, animal collision, or theft.
4. Uninsured motorist protection: One of the worst things that could happen to you is being stuck with bills to pay in case of an accident that wasn’t even your fault. With the uninsured motorist protection, the insurer will pay you in case you are involved in an accident and the person responsible isn’t able to pay for damages.
5. Personal injury/ medical insurance: In case of an accident you may be required to pay huge costs to treat any injuries caused. Personal and medical insurance will cover your medical bills as well as those of your passengers. However, having a good health insurance plan eliminates the need for medical or personal injury insurance
6. No fault insurance: This cover is only required in some states. The policy covers any property damages or injuries regardless whose fault the accident was. This type of insurance is quite expensive to have making it cheaper to choose other alternatives
Auto insurance is mandatory for any car owner; choose a cover you can afford. There are many options to choose from, shop around for the best deal. While auto insurance is important, it’s more important to drive carefully. Don’t drink and drive, ensure your car in good condition by regularly having it checked and get a driving license renewal when your license expires.
