Why Do Car Owners Need Car Insurance?

Car insurance or also called auto insurance is a property protection everyone possessing car needs. This is basically to protect both the car own as well as the owner themselves. Referring to the definition of insurance, it is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. Car insurance is the risk transfer from the policy holder to the insurance company. The risks transferred consist of loss, damage, accident, and all loss dealing with the car, with the reference to the contract poured on the policy.

But why do you need such an insurance? Below are the reasons why the car owners need this car insurance.

1. To pay a little for the hug amount of money 

According to the National Highway Traffic Safety Administration during the 2012, there were an estimated of 9,75 millions of vehicles involved in police-reported traffic crashes, in which the 96% of them were passenger vehicles and light trucks weighing 10,000 GVWR or less. The average property damage cost of a car was about US$8,900. This is excluded the accident causing disabling injuries which averaged out to US$72,700. You can imagine in which the world is not covered with such insurance.

Buy holding a policy of car insurance, what you need only is to pay a little amount of premium and anytime such incidence happens, you could claim for the loss or damage of your car. The premium paid is far less than the claim you will receive. 

2. Saving time and liability coverage 

Anytime an accident happens to the car owner, the expert of the insurance company where they pay the premium, will assist you in handling all things dealing with the claims, to find the the best repair shop, and all things dealing with the complaining. Besides, if you have bumped the uninsured driver, your car insurance company will also provide you for the coverage of cost for the uninsured driver. The later cover is include in liability coverage

3. Supplement health insurance 

Car insurance has at least three coverage: property coverage, for the damage of the car; liability coverage, for covering the claims arisen from the one the policy holder bump on; and medical coverage, for the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses. 

The policy holder has the right for the medical coverage claim, though they have their own health insurance claims. This would be beneficial for the car insurance policy holder. 

Those are three reasons why do we nee Car Insurance.