The average cost of car insurance has gone up 23 percent in 2019. To own and operate a decent car in 2019, on average, 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 find a car insurance with comprehensive coverage.
Here are the 5 situations when your car insurance will bail you out
1. Collision Injury
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 actions or not, you will be the one responsible for the damages; particularly if the other person you hit was a pedestrian. In such a situation, your car insurance will cover all expenses from the initial ambulance ride to the rehabilitation of the person injured.
2. Natural Disaster Damage
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 into a piece of scrap metal. In such a situation, car insurance, including hurricane or natural disaster coverage, will help bail you out.
3. You Get Pulled Over by the Police
Texas state law mandates every car owner to have car insurance coverage of $60,000 (per incident). Along with that, every car owner must have coverage for property damage worth $25,000. So every time a cop pulls you over for speeding, general questioning, or any other issue, you are required 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 Insurance (and trusted car loan lender), car financing or leasing requires you to produce car insurance – including collision and comprehensive coverage. Your lender will never take a chance on you by lending you the money without car insurance because they are still considered part-owners of the car while you make your loan payments.
5. Your Car Gets Stolen
Car insurance with comprehensive coverage can also help you get a brand new car. Carjacking is quite prevalent in certain areas of the country, especially in large cities. You never know if you might be the next victim. However, you should note that car insurance does not cover the belongings kept inside the car (like cash, mobile phones, jewelry, etc). Comprehensive coverage takes care of damages that occur to a car due to a cause other than a road accident or a collision, like stolen car parts such as tires, seats, dash cams, radios, and so on.
These are just some of the situations in which having car insurance can prevent you from going bankrupt or sinking into a sea of debt. While spending the money on comprehensive coverage can seem costly and superfluous, it’s always better to take preventative measures than it is to take restorative ones.