There are several reasons that one must definitely opt for auto insurance. there are many benefits of taking auto insurance. However, it is also very much important to note that some states in the country have made it mandatory.
Safeguard auto Lender
If you have a loan on your car, the lender will need to know that you have adequate car insurance because the loan is secured by your vehicle. If anything were to happen that would damage the car, it would also diminish the value of it. That would weaken the car lender’s collateral.
It is Mandatory
This is the most obvious reason why you must have car insurance. But all the reasons given above are why states mandate car insurance coverage. By requiring that everyone has it, everyone is protected from the risks of owning and driving a car.
Protection of Assets
Let us say that you think you have enough money that you could be self-insured in the event of an accident. Maybe you have at least a quarter of a million dollars, and feel that you don’t need car insurance.
To fix Cars
Car repairs are expensive. A single, seemingly harmless fender bender, could easily cost a couple thousand dollars. In more serious cases, your car may not be drivable. If you dis not have car insurance and you were the cause of an accident, you would have to pay out-of-pocket for the repair. But because of car insurance, your car will be repaired or replaced fairly quickly.
For Compensation
As much as you might hate the concept of car insurance, the fact that it is required can be a major comfort if you get into an accident that is caused by someone else. In that situation, you are the victim and in need of compensation for injuries that you sustained, as well as any damage to your vehicle. Car insurance enables a person who may have no other financial resources, to compensate you for your loss. Given are the reasons to take auto insurance.
