Car insurance is required by law, and it’s an expense a lot of people would rather do without. Paying regularly for something that you don’t actually use on a regular basis – and may never use if you’re lucky – can seem like it’s a money-making scam on the part of the insurance companies. The truth is that car insurance is an investment that you are making in protecting yourself and your future from the unexpected. It’s not a scam – and yes, you really do need it.
It’s the Responsible Thing to Do
The laws requiring car insurance exist for a good reason. If an error of judgment on your part causes someone else to be injured or their property damaged, then you are responsible for the cost of making it right. If you broke a friend’s property, you would feel that the right thing to do would be to pay to repair or replace it. Why should it be any different with a stranger?
When it comes to car accidents, the level of financial responsibility is much higher. Damages can and do regularly run into the thousands. What happens without insurance when people are responsible for such damages but can’t pay for them? Extended court battles, financial struggles, and simply a lack of the ability to carry the responsibility for one’s actions.
Having car insurance makes certain that you are financially responsible for any damages you might cause. You pay that premium in order to maintain the ability to get those damages covered should that day ever come when you face a claim against you. Car insurance is required by law to protect everyone and make sure that you, too, will receive compensation if you’re on the other side of the claim one day.
Accidents Happen
It’s a common phrase for good reason: yes, accidents happen. They happen every day to the tune of millions of dollars in property damage and medical bills. They happen to good drivers. Everyone makes mistakes. You carry car insurance because of that simple fact.
While most accidents are minor, serious accidents are not at all uncommon. They can result in the total destruction of your vehicle or that of another driver, and in serious injuries that can leave someone off work for an extended period of time. They can leave people dealing with final expenses for a loved one.
While car insurance doesn’t prevent these things from happening, it provides a financial security blanket that ensures that if nothing else, figuring out who everything will be paid for is one thing you don’t have to worry about when you’re dealing with an accident large or small.
Remember that an accident doesn’t have to be your fault for insurance to be helpful. Even when the other driver is at fault, it can still cover you if you’re involved with an uninsured or underinsured motorist. It can cover you for the rental car you need, and even pay for towing.
You Can’t Afford Not to Have It
Unless you’re one of the few who is independently wealthy and has a large supply of cash to draw on if you are faced with a claim against you, then car insurance is something you simply can’t afford to be without. Think about it this way: if you can’t afford the car insurance premiums, how will you afford the much, much higher cost of paying a claim out of pocket?
Car insurance doesn’t exist to scam people out of their money on a product they may never use. It exists to protect you against the very real risk that you could find yourself financially responsible for some large bills you can’t afford to pay.
It’s true that car insurance is something you pay for largely without using for long periods of time. But when the day comes that you do need it, it can save you from a financial disaster.
It’s Not Only Accidents
Many people think that since they are good drivers, they have no need of car insurance. But there is another side to car insurance. What happens if your car is stolen and wrecked? What happens if it’s destroyed by fire, or keyed by vandals?
Car insurance is there for more than to cover you in the event of an accident. Most car insurance policies today come with a range of extra coverages and services that can make them valuable and helpful even if you never have an accident. Things like roadside assistance and rental car coverage are helpful options that increase the value you get out of your insurance policy.
Car insurance is something every driver needs because no one can predict the future. Taking the risk of driving without insurance is not only illegal – it can have a far-reaching impact on your life should you make the gamble and lose.
