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| 5 Reasons You Absolutely Need Car Insurance |
As the saying goes, you can’t drive without insurance, but how much do you really know about auto insurance? It may be one of those things that you don’t think about unless something bad happens. But just because you don’t think about it doesn’t mean you shouldn’t be prepared in case something does happen. So check out these five reasons why you absolutely need car insurance, and then go take a look at some different policies to make sure you have the right protection plan in place to meet your needs and budget.
1) Personal Injury Protection
If you’re in an accident, PIP insurance can help pay for injuries. However, as auto insurance experts will tell you: most of us don’t know what it covers. PIP typically pays for 80% of your medical expenses and lost wages—and some policies cover even more. While not all car insurance companies offer PIP coverage, you should be sure that if your policy does cover it, they are paid on a first-party basis (meaning they will reimburse your treatment directly). Why? Because otherwise, you could end up having to pay back all that money out of pocket after your claim has been denied by paying them directly out of pocket.
2) Vehicle Replacement/Repair
If you get into an accident, auto insurance helps pay for vehicle replacement or repair. Without car insurance, your own pocket will have to foot these costs—which can become quite substantial if you’re in a serious accident. Vehicle replacement/repair is not something you want to take on alone; let car insurance do it for you.
3) Comprehensive Coverage
Comprehensive coverage (also known as physical damage insurance) is often overlooked by car owners, but it's one of your most important types of auto insurance. It covers a wide range of things, from an accident with a deer to vandalism to theft. If you ever find yourself in a situation where you need comprehensive coverage, it will be there for you—and will allow you to breathe easy. Be sure to buy enough auto insurance so that if anyone type is stolen or damaged, your insurer will cover all losses.
4) Collision Coverage
If you own a car and drive it on a regular basis, chances are high that you'll need collision coverage at some point. According to NerdWallet, 43% of American drivers have never filed a claim against their car insurance policy. If you're one of those people, you might not understand why collision coverage is so important. First off, think about what would happen if you were in an accident and didn't have collision coverage. Not only would your car be totaled out, but your bank account would probably be completely drained as well.
5) Uninsured/Underinsured Motorist Coverage
This is important coverage because it will protect you from harm in an accident caused by someone who doesn’t have enough insurance to pay for your injuries. This can be life-saving, as medical costs for serious injuries can often run into tens of thousands of dollars. Without UIM, that person with no insurance would be personally responsible for paying for all your medical bills—an unlikely scenario, considering their lack of assets. If you have UIM and get hurt in a car accident caused by a driver without enough insurance to cover your expenses, then your policy will step in and take care of things. Remember that uninsured/underinsured motorist coverage only applies when another driver is at fault—not if you cause an accident yourself.
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