The Benefits of Auto Insurance

May 19, 2020

Auto insurance is a contract between you and the insurance company that protects you from liabilities and financial losses in the event of an accidents or theft of items. In exchange for a relatively small premium, the insurance company will cover your losses as set out in the agreement.

Why Buy Car Insurance?

Car insurance is provided by statute. Driving around without a proper auto insurance policy is illegal.

If you are at fault in a car accident, the auto liability coverage required on your car insurance policy helps pay for covered losses, such as the other party's medical bills and damage to their vehicle, or other property that results from the accident. It also helps pay your legal fees, if you're taken to court over the accident.

Having the proper car insurance coverage in place can do more than just fulfilling a legal requirement. A car insurance policy can help protect your vehicle, your wallet, and offer peace of mind.

What Happens If Someone Borrows My Car?

Usually, the car insurance policy follows the car that it is covering. So if you lend your car to a friend, typically, your auto insurance would cover most of the claims that could happen while your friend is driving your car.

However, if someone other than you will be driving your car regularly, it is best to check to see whether you have the appropriate coverage. You may need to add this person to your policy.

In conclusion

A car accident can be very expensive, even if you’re not at fault. Managing and paying for the repairs or replacement of your car, and potentially going to court, can be time-consuming and costly.

That’s why it is important to buy the right level of car insurance coverage from an industry-leading insurance company with a great claims service reputation. Excellent claims service can help save your time and minimize your frustration after an accident by streamlining processes from getting a tow truck and rental vehicle, to paying for medical bills and repairs.