A frequently asked question is what big of a difference will be buying car insurance make. So here is the answer to that. In India, we witness accidents very frequently which makes it the number one reason behind the necessity of car insurance. Suppose you have met with an accident or have caused minor damage to your vehicle; at that time, you should not be held liable to pay for the damage. Hence, car insurance helps you to either reduce money to be paid for repairing or cut all of it. It also pays off damage caused other than accidents like earthquakes, terrorism, and other natural causes. The advantages of car insurance also include lawsuits and legal fees when held liable for the damage. However, to cover your damage, you must have a comprehensive car insurance policy without which you would not be able to claim the benefits.
How to identify which insurance is made for you
There are six common types of car insurance, and every state asks to carry a certain type of insurance. These six types of insurance are:
- Collision: It pays off for repairing or replacing the policyholder’s car after an accident, regardless of fault. This is mostly required when the car is financed or leased.
- Liability: This helps in paying off the damage caused to the third party after an accident. This is required in every state.
- Comprehensive: This helps to cover up the damage caused to the policyholder’s vehicle due to some reason other than an accident. It is required in the case of leased or financed cars.
- Personal Injury Protection: It helps in paying off the direct or indirect medical expenses of people after an accident. It is needed in 13 states.
- Uninsured or Underinsured motorist: It includes damage or expenses incurred after an accident with a non-insured driver. It is required in 20 states.
- Medical Payments: It helps to pay off the direct medical expenses of the policyholder after an accident. It is required in 2 states.
Conclusion
I hope it must have become clear by now that how important having car insuranceis these days. Imagine you had planned a party at your place, and everything is ready, except for the special dish you had decided to serve. Here, you would be conscious of how to be quick with it. At this point, you would consider watching something online to get an idea of how to make the dish in less time. Precisely, car insurance acts as a life savior.
