Car Insurance: Why is it Necessary?

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Car ownership comes with a lot of advantages, but the responsibilities are just as many. When you own a vehicle, you’re required to maintain it in tip-top shape, not only for your welfare but also for the safety of people you share the road with. You must also adhere to driving rules and other legal regulations.

An example of the latter is having active car insurance. This is a mandate all over the United States, except in New Hampshire, where car insurance is not a legal requirement as long as an individual is able to present proof of adequate financial capacity.

Why Car Insurance is Required

Making car insurance a requirement for owners is reasonable and acceptable despite its costs. This is because car accidents are alarmingly common. In fact, the Wisconsin Department of Transportation reported a total of 129,051 crashes in 2016. Of these unfortunate accidents, a whopping 97,461 caused property damage.

Being insured allows you to have on-hand funds to cover vehicle damage from road accidents. Moreover, this financial protection extends to injuries sustained by pedestrians, passengers, and other drivers, as well as the damage to their properties.

While it’s true that being cautious and driving responsibly can help prevent such happenings, the risk of accidents cannot be completely eliminated. That’s why it’s worthwhile to have the reassurance that you’ll be covered financially. The best part is, car insurance is not limited to car accidents but also deliver financial aid if your car is destroyed in a fire incident, stolen, or vandalized.

person taking a photo of a road accident

The Consequences of Not Being Insured

If you drive without insurance, you’ll face some dire consequences because that is illegal. Driving uninsured may result in fines or disqualification from driving. To add, there’s no limit to the amount of the maximum fine. You will also be given penalty points on your driving license.

If you think those are bad enough, well, we haven’t even reached the worst yet. Harsher penalties may be imposed on uninsured drivers who get involved in road accidents or caused injuries and fatalities. In addition, the police are authorized with seizing and destroying any vehicle that is being driven uninsured.

The Advantages of Having Car Insurance

Of course, since it’s mandatory, it really is indispensable to buy car insurance. But even if it’s not a requirement, having auto insurance is still extremely beneficial.

  • Saves you from hefty expenses. Yes, car insurance can be expensive, but the amount you pay is actually much lower than that you’ll be forced to provide in the case of an accident. Coverage such as property liability, bodily injury liability, collision, or comprehensive car insurance in Wisconsin or wherever you are located will support you financially to cover costly claims.

  • Serves as health insurance supplementation. Your car insurance can help cover medical costs that health insurance typically does not. A policy can help pay for treatments and dental work expenses from injuries you have sustained in a road accident.

  • Saves you from time-consuming processes. When a car accident occurs, the fallout can be very inconvenient and time-consuming. However, with appropriate and adequate coverage, you don’t have to deal with tedious negotiations with involved parties. You also have fewer worries about managing repair or replacement expenses of your car. After you make a claim, your insurance provider or company will assist you throughout the entire process.

Having car insurance is a must, not solely because it’s mandatory, but because it’s indeed necessary to keep you and the people around you protected.

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