Payment after payment month after month may leave you wondering what the purpose of car insurance is.
If you have never filed a
claim, are a new driver, or new to car ownership, it can be increasingly
frustrating because of the high cost combined with the feeling of not getting
anything in return.
Believe it, car insurance does have a purpose and is not a
scam. Understanding what car insurance is for will alleviate some of your concerns.
Car Insurance is for Financial Protection
If you carry PLPD only on your car, it is possible you will
never file a claim. Insurance is a game of chance. Maybe your car did get
damaged and you have car insurance, but no coverage to fix it. It is at this
point in time when you feel your car insurance is worthless, but you get what
you pay for. PLPD does not cover physical damage to your car. It does however,
offer you protection for other types of losses.
- Injuries, Pain, and Suffering to Others Depending on Your State's Laws
- Property Damage
- Medical Costs for You (Automatically included with liability policies if you live in a no-fault state.)
PLPD car insurance protects you against lawsuits. If you are
at-fault in a car accident, the injured party will want compensation. Without
car insurance, you will be held financially responsible and potentially forced
to pay for all the damages out of your own pocket.
Most people cannot afford to self-insure, which is why most
states require at least PLPD to be purchased for all drivers.
Years without a claim may make you wonder if you need car
insurance at all. Nothing ever happens so why keep paying the premiums? It is
good to not have any claims. It will keep your insurance rate lower and you can
avoid claim hassles.
By continuing to carry car insurance you are legal to drive
and have protection for a possible future claim.
Car Insurance is for Physical Damage Repairs
Car insurance can pay to repair your vehicle after an
accident depending on what coverage you select. A vehicle is often a major
expense and you want to protect it. Comprehensive and collision each offers
coverage for physical damage, which comes with a lot of rules regarding what is
covered and what is not.
- Comprehensive coverage is for anything other than a collision. Fire, theft, vandalism, deer, and storm damage all fall under comprehensive. Usually, comprehensive is required in order to get roadside assistance. It is also required in order to purchase collision coverage.
- Collision coverage protects your vehicle against accidents. Collisions with automobiles, mailboxes, light posts, trees, and any other inanimate object. A deductible is often required to be paid before getting your repaired vehicle back. Collision coverage most often comes into play when you are at fault or do not know who damaged your vehicle.
Car Insurance is NOT for Mechanical Repairs
Unless your mechanical
damage was caused by an exterior factor such as vandalism, fire, or a
collision, your car insurance will not cover it. Wear and tear or bad
workmanship is not something your car insurance handles. All mechanical repairs
are your responsibility or possibly covered by your warranty if you have one.
Car insurance is for sudden
accidental occurrences, not auto maintenance. For those of you who feel like
you have paid in to your car insurance way more than you will ever get out,
consider yourself lucky.
Claims, especially severe
claims are always best avoided. Think of car insurance as protection against
the unthinkable. Car accidents occur every single day. Each state mandates its
own set of car insurance laws and enforce strict penalties when caught driving
without it.
Car insurance laws not only
protect you from yourself but from the other drivers on the road. Keep your car
insurance active at all times, you might be extremely grateful one day for that
"useless" policy.
@thebalance