Why Do You Need Car Insurance?
Posted on August 24, 2008
Category: car insurance |
“Why do you need car insurance?” is maybe a question that has several obvious answers springing to mind, but when you think about it in this day and age, not all of those answers are as pertinent as they once were. Let’s look at this from a car owner’s point of view.
First and foremost, just about wherever you live in the world there will be a law that forces every car owner who uses their vehicle on public roads to have a minimum level of insurance cover. The basic level of car insurance is usually known as “third party” and is often meant to provide financial support to others in the event of an accident. This basic level of car insurance cover does not protect the driver of the vehicle or indeed their vehicle either. It is meant so that if a third party, or other person not travelling in the vehicle that is involved in the accident is injured or killed, then they or their family can be compensated financially.
But apart from the most important aspect of car insurance which covers third parties financially in the event of an accident, what are the other reasons for needing car insurance?
Well, the next level is providing financial support to passengers and the driver in the vehicle involved in an accident. This is also important as an accident may not be the fault of the driver and they may incur injuries that may prevent them from leading a normal life. In this case they will need the financial support that a car insurance claim will provide for them should they car insurance policy cover this area.
Next we have car insurance policies that cover the damage that might occur to the property of third parties in the event of an accident, such as other vehicles, buildings, walls and fences, lamp posts, bus shelters, trees etc. These all have to be paid for by someone and should the driver causing the accident not have sufficient car insurance cover, then he may be sued for the value of repairs to third party property.รง, making this level of car insurance highly valuable.
Then we have the driver’s own vehicle.
This often becomes the last level of car insurance cover that a car owner can be provided with and can come in several levels: these would typically cover things such as theft of the vehicle and the damage caused thereby, the damage cause by attempted theft, items stolen from the vehicle such as trade tools, personal items etc. Then there is car insurance covering fire damage to the vehicle.
Finally there is damage to the vehicle itself when involved in an accident whether it by the fault of the driver or not. This last level of car insurance is usually the most expensive and is typically labeled as “comprehensive”, or “fully comprehensive” or “accident waiver” car insurance cover.
These are all reasons why you need car insurance. To not only protect your car, but to provide financial cover to third parties that may inadvertently become involved in an accident that also involves your car. This is something that should always be borne in mind when considering car insurance for your vehicle and an important decision that should never be taken lightly.
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