Car accidents are quite common, and the end of it is that it leaves you with a lot of bills to settle. For example, if you’re involved in an accident caused by you, you would need to pay medical expenses, legal fees, lost income, car repairs, and others.
And the sad part is you would have to pay for it from your pocket if you have no insurance coverage. Apart from accidents, other issues may arise while using your car.
This is why you need to prepare ahead for any troubles you may face with your car, and that’s why you need car insurance. But what are the benefits?
Assured financial liabilities
If you’re not ready to bear the financial liabilities of huge accident damages caused by your car, you need to get car insurance. Insurance policies take care of most of the financial liabilities you may face with your vehicle.
Covers damage or loss to insured vehicles
First off, auto insurance is mandatory in many places, including Canada. So if you have a car, you would need to get insurance.
Having car insurance helps cover any damage or loss caused by accident, fire, theft, riot, strikes, etc. For instance, suppose you live in Calgary, and you get a Calgary car insurance quote today, you won’t have too much of a bill to cover when such incidents occur.
Understandably, everyone knows how much car repairs can cost and that’s quite a burden. But, the use of a car insurance will eliminate this expense to a great extent.
Third-party liabilities
When accidents occur, there’s often a third party involved. If you’re at fault, they would want you to bear the cost or sue you.
However, insurance covers any third-party liabilities, including legal fees, damaged property, death, or injury.
Car replacement
All insurance policies often have an IDV (Insured Declared Value), which sorts out car replacement in case it’s stolen or totaled. The IDV is the amount the insurer will pay if that should happen; they will bear the expense of replacing the car.
Covers legal fees
If you’re involved in an accident with a third party, there is a high chance that they’ll sue you, especially when you cause serious damage. You’re likely to spend a lot of money with a legal case at hand, but your insurance policy will cover that.
On the other hand, if you are the victim and would like to file a case against the other person, your insurer will also cover all the expenses.
Covers personal and passenger’s injury
Sometimes, accidents can cause severe or minimal injury. Some car insurance policies cover personal, passenger, or other third-party injuries caused by your car and pay for the treatment.
Since not all policies take care of that, you need to get a Calgary car insurance quote that covers such injuries, so you won’t have a lot of expenses to settle after an accident.
No claim bonus
Another benefit of having car insurance is the no claim bonus (NCB) advantage. You are eligible for this for every claim-free year, and sometimes, they’re usually available at a discount, making insurance even more affordable.
Conclusion
Insurance policies are mandatory, and while it may seem uncomfortable, it offers many benefits. A lot can happen in using a car which involves sorting bills, compensation, maintenance, etc.
You won’t have to worry about it with an insurance policy because most policies cover many of your car’s financial liabilities.
