Most individuals face times when they must adjust their home budgets and search for areas where they might trim their spending. But which items can really be reduced or removed? Well, if you’re going through your home budget, you might start wondering if your insurance premiums are really worth the cost, mainly if your car insurance premiums are essential.
While different life situations can prompt you to have to adjust your budget so that you’re spending within your means, the truth is that your car insurance premiums fall into a distinct category than your other recurrent monthly costs. That’s because they aren’t buying you a tangible item, like a meal from Mcdonald’s, a Samsung Galaxy Tab S8, or a service like Spotify or HBO.
Instead, your insurance premiums are paying for insurance coverage that’s helping to protect your assets and money from the impact of unlikely yet financially devastating events.
This is precisely why you should think twice before dropping your car insurance premiums from your budget. Nevertheless, if you are still not convinced, here are five good reasons why it’s crucial to fit your car insurance into your home budget yearly.
It’s Required By Law
In 99% of areas worldwide, car insurance is required by law. And while there are numerous tiers of car insurance coverage, there’s nearly always a mandatory minimum that each driver needs to obtain.
This is undoubtedly the case for Canada, where all provinces and territories require car insurance. So, for example, if you reside in Milton, Ontario, and that’s where your car is registered, you will need to contact a Milton Ontario car insurance broker to get the best deal on your premiums, but you will undoubtedly need to get an insurance package since it’s required by Canadian law.
While basic car insurance won’t pay costs like repairs to your vehicle, its purpose is to protect your pocket if you are the negligent party in a car accident that causes damage to property or damage and injuries to other drivers.
It Will Help You Pay For Damages Caused By “Vis Major”
Make no mistake here; car insurance doesn’t only come in useful after experiencing a car accident on the road. Weather events like ice storms, hail, wildfires, and more can cause colossal damage to your car.
Luckily, comprehensive car insurance packages pay for what insurance providers call vis major or acts of God, which stand for events where neither you nor some other driver is at fault. This type of coverage is also handy to have should your vehicle get vandalized or even stolen. Depending on your selected policy, it might even cover damaged or stolen items in your car.
It Will Get You Compensated For An Accident Caused By Someone Else
Car insurance will help you cover the costs if you’re the one who caused the car accident on the road and if there is any damaged property on injured passengers. But, on the other hand, when you get hit by someone else, you’ll be glad that the authorities require everyone to have valid car insurance as well.
On the flip side, if you ever get hit by an uninsured driver, it will take a long time to get the compensation you’re entitled to. In the meantime, you will have to pay the bills for repairs, medical payments, and more from your pocket. Therefore, it’s also called liability coverage, as the other driver is considered liable for your medical bills (bodily injury coverage) and damage to your car (property liability coverage).
Your Car Insurance Policy Can Even Complement Your Health Insurance Plan
Now that you know how car insurance can pay for your and other people’s medical bills, you’re probably wondering what happens if you simultaneously have health insurance coverage.
Well, car insurance can successfully complement regular health insurance treatments that your health insurance policy won’t cover in the case of an accident. Have you damaged your teeth during a car collision? A comprehensive car insurance policy will definitely offset the costs and take the burden off your dental insurance, complementing it in the case of an accident.
It Lets Other People Drive Your Vehicle
Chances are that you won’t be the only one driving your vehicle. This is particularly true if you have a partner in the picture or children who drive or will soon be driving. Also, if you’re related to the person or live in the same household, most car insurance packages will let you add other drivers to the list.
And what if a friend in need wants to borrow your car? Car insurance applies to the covered vehicle, so the policy covers whoever drives the car, including a friend. If your friend gets in an accident, but it’s not their fault, the at-fault driver’s insurance will be responsible for all costs.
Finally, when you have a car insurance policy in place, you can drive without wondering, what if…? While you might not worry because you’re pretty confident in your driving skills and abilities, there are many situations where they won’t even matter.
You might need to swerve into a fence to avoid hitting someone on the street, or another driver may run a red light and collide with your vehicle.
A good car insurance policy can buy you peace of mind and protection for a broad range of scenarios, which is why you should always fit it into your home budget and enjoy peaceful driving.