I know the average cost of car insurance has gone up by 23 percent in 2019 than it was in 2011. To own and operate a decent car in 2019 costs $9,282. Even with the rising costs of car insurance, car sales are on the rise. If you are planning to buy a car or already have one, the best way to safeguard yourself (from becoming a victim of unexpected expenses) is to have car insurance with comprehensive coverage.
Here are the 5 situations when your car insurance will bail you out
1. Someone gets injured during a collision
Your car insurance will cover the damages incurred to the car during an accident or a collision. But most people fail to notice another facility that your car insurance provides known as “bodily injury coverage”. Whether the accident was a result of your fault or not, you will be the one responsible for the damages; particularly if the other person you hit was walking along the footpath. In such a situation, your car insurance will cover all expenses from the initial ambulance ride to the rehabilitation of the person injured.
2. Damages to your car due to a natural calamity
A natural calamity can strike at any moment. Particularly, if you are a resident of North Carolina, Florida, or Louisiana. Hurricanes, tornadoes, and storms are capable of transforming your brand new Porsche in a piece of scrap metal. In such a situation, car insurance including hurricane or natural calamity coverage will bail you out.
3. You got pulled over by a cop
Texas state law mandates every car owner to have car insurance coverage of $60,000 (per incident). Along with it, every car owner must have coverage for property damage worth $25,000. So, next time a cop pulls you over for speeding, general questioning, or any other issue, you are needed by law to produce your driver’s license and insurance papers. Failing to do so can get you in some serious financial trouble.
4. You want to finance or lease a car
According to AllState, a trusted car loan lender, car financing or leasing requires you to produce car insurance including collision coverage and comprehensive coverage. Your lender will never take a chance by lending you the money without car insurance as they are still part-owners of the car while you make your loan payments.
5. Your car gets jacked
Car insurance with comprehensive coverage can help you get a brand new car. Carjacking is quite prevalent in certain areas of California. You never know you might be the next victim. However, you should note that car insurance does not cover for content kept inside the car(like cash, mobile phones, jewelry, etc). Comprehensive coverage takes care of damages that occurred to the car due to a cause other than a road accident or a collision. It also covers stolen car parts like tires, seats, dash cams, etc.
These are the situations in which having car insurance can prevent you from getting bankrupt or sink into the sea of debt. I understand how tough it is to cough up a few hundred dollars every month, but as they rightly say “prevention is better than cure”.