Car insurance is expensive, but most countries require it for a reason. Car accidents happen – they are the risk we accept to take every time we get into our cars. If you ever happen to be in a car accident, your insurance can save you a lot of money and a lot of stress. Here’s why it’s important to have car insurance:
To Compensate You for an Accident Caused by Someone Else
When you’re the victim, you need to get compensated for the injuries that you’ve sustained and for the damage to your vehicle. In a situation where not everybody is required to have car insurance – and the one that caused the accident was uninsured – you’d likely have to bring a lawsuit against him or her. Not only would this cost you legal fees, but there’s also no guarantee that you’d collect the compensation even if the court decides in your favor. A car insurance enables someone who may have no other financial resources, to compensate you for your loss.
To Compensate Someone Else for an Accident Caused by You
Now let’s say that you’re the one who caused the car accident. If you didn’t have car insurance, you’ll be on the other side of the lawsuit. Having car insurance helps you to get on with your life – even if the accident was your fault. Sure, your premium will go up after the accident, but at least you’ll drive off knowing that the real cost of the accident will be covered by your insurance company.
To Get Your Car Fixed, No Matter Who’s Fault the Accident Is
Car repairs are expensive. A slightly damaged car could easily cost a couple of thousands of dollars to repair it – and in more serious cases, the car even may not be drivable anymore. If you didn’t have car insurance and you’re the one who caused the accident, you would have to pay for everything yourself; out-of-pocket.