Insuring your car is a necessary thing to do and should be done in the same way that you plan your yearly budget. There are many benefits to having car insurance, but most people don’t know them. Therefore, it is essential to understand the benefits for you. Here are some of the most important benefits of car insurance.
- PAYING FOR DAMAGES THAT EXCEED YOUR DEDUCTIBLE
The deductible is the amount of money you have paid out-of-pocket before your insurance starts to cover a claim. A claim is money spent on an incident. The benefits of car insurance allow you to not pay for any damages that exceed your deductible. For example, a car accident might cause $30,000 worth of damage to another person’s car, but the damages that are caused to your car might be only $5,000. You don’t have to pay for the difference between the amount of damage that was caused to both cars.
- GETTING A FREE LOAN IF YOU ARE IN AN ACCIDENT
Some car insurance companies offer free loans if you are in an accident. The amount depends on the company, but some will give you between $500 and $1000. This might seem like another benefit of having car insurance, but it is still essential. With the money, you can replace your damaged or lost items in the wreck and pay for any medical expenses. Without insurance, you would be responsible for paying for those expenses.
- RECEIVING LOWER RATES ON YOUR CAR INSURANCE
In case of an accident, your car insurance can be responsible for paying many of the damages caused to another person’s car. If the other driver is found at fault, this can mean expensive repairs and bills. Many companies offer lower rates in exchange for your liability and comprehensive coverage. Full coverage will also cover any damages caused to your vehicle because there is less coverage, and you will not have to pay for it.
- A TEMPORARY NEW CAR IF YOUR CAR IS TOTALED
The replacement is a benefit that many people don’t realize they get. The insurance company will give you a loaner vehicle if your car is totaled in an accident. This vehicle can be used to get to work and drive your kids to school or soccer practice. It does not have to be the same make and model as your old one, nor does it have to be a luxury vehicle that costs thousands of dollars more than your old one.