Auto insurance is an integral component of owning a car, protecting drivers against financial losses due to accidents or theft while offering peace of mind on the road. While having auto insurance may seem necessary for all drivers, its many hidden advantages may surprise you: medical coverage costs savings discounts car repairs etc… Here are eight benefits associated with owning auto insurance policies that every driver should know about.
What is auto insurance?
Auto insurance is a financial protection policy designed to address risks associated with owning and driving a car, such as an accident or theft, medical expenses and liability costs. Cover can be purchased for either one car or multiple cars depending on your needs – state laws mandate this coverage as mandatory coverage for drivers.
1) Financial Protection
Auto insurance provides financial protection in case of an accident which was your responsibility, theft of your vehicle and legal defense costs associated with that incident. Without auto insurance in place, all costs associated with an accident, including injuries sustained to others as well as damage done to property may become your liability and legal fees may also become necessary to defend you in court proceedings.
2) Medical Coverage
Some auto insurance policies provide medical coverage for anyone injured while riding in your car, regardless of whose name they appear under on your policy. In addition, this coverage could protect you and any household drivers if struck by another vehicle while walking or cycling.
3) Liability Protection
Liability coverage serves to cover costs related to injuries to others from an accident that you caused, should they lack sufficient assets to fully compensate the injured party themselves. When this occurs, insurance companies often become responsible for paying any remaining costs such as medical expenses and lost wages incurred as a result. Auto policies also protect drivers against lawsuits should one or more passengers become injured because of something wrong in your vehicle.
4) Collision Coverage
Collision coverage Collision coverage helps cover costs associated with damage caused to your car by an accident or other events such as falling trees or hitting a fence, such as towing and storage costs while it’s repaired, towing coverage can even cover total loss in case yours becomes totaled due to an accident and auto insurance will cover its full replacement value minus your deductible amount.
5) Comprehensive Coverage
Comprehensive coverage protects you against costs associated with damage to your car from non-collision events such as vandalism or theft, as well as providing towing and storage coverage while repairs take place.
6) Discounts On Car Repairs
Some auto insurance companies provide discounts when repairs are completed at a certified repair shop, so having car insurance with one that offers certification allows you to take advantage of discounts offered through auto repair shop associations. Furthermore, using a facility specialized in repairs for your make and model of car may qualify you for additional savings.
7) Rental Car Coverage
In the event that your vehicle is totaled after an accident or is out of commission while being repaired, rental car coverage can assist in covering rental expenses. This coverage typically applies in specific instances – for instance if it becomes totaled as the result of an accident – while also covering rental costs during repairs (whether those repairs belong to yourself or another driver). Rental car coverage provides coverage against such costs during this period as it would cover renting another car during this timeframe).
8) Roadside Assistance
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Some auto insurance companies provide roadside assistance coverage. This coverage can assist with various roadside assistance needs, such as battery jump-start, tire change, fuel delivery and car lockout assistance. You may even be able to use it to help a friend or family member if their car breaks down – in most cases proof of insurance must first be presented before taking advantage of roadside assistance coverage.
Conclusion
Automobile insurance is an essential element of car ownership, providing financial protection in case of an accident or theft and offering peace of mind while you drive. Though auto insurance is necessary, its many other benefits might go unnoticed by drivers; including covering medical costs and discounts on repairs for your car.