Most people love their motor vehicles, and spend good money on them. Like every investment, your motor vehicle needs to be protected from possible theft, or damage. This is where auto insurance companies come in.
Auto insurance can cover loss due to theft, accidental damage, fire, and even covers medical bills and lost wages. The terms and cover provided to you as security is agreed upon when you take out your insurance policy.
Upon the unfortunate occurrence of an accident, if you are at fault, and you don’t have insurance, you are liable to pay for not only the damages to your self and vehicle, but also the third party and his vehicle! The third party can, and most cases will sue you not only for damages to his or her vehicle, but also for medical expenses, lost wages, pain and suffering. All this can leave you with a hefty loss, plus the additional headache of legal proceedings, fees and the like.
Another possibility is someone causes an accident involving you; you might not be at fault, but that doesn’t mean you won’t have to spend heavily on repairs and medical bills! Suing the person will help you get some money, but it’s a very long and tedious procedure, best avoided in the opinion of most experts.
Past history has shown us that insurance is always beneficial to the consumer; if something happens, you’re protected, and if not in full, you will receive a part pay out based on the extent of the damages at the minimum. With the steady increase in traffic, and with the onslaught of better and faster cars, the chances of accidents also increase. With the current economic state, many people who have been laid off and still require to sustain themselves and their families, turn to crime and theft as an easy solution. Car theft has been on a steady rise over the past few years.
Vehicle theft is notorious, on the rise especially for those exotic sport cars which fetch very high prices just for their spare parts. Vehicle theft is now gaining such widespread attention that there have been quite a few mainstream Hollywood movies, with vehicle theft as the baseline of the plot. Many people are distressed to know, that just the fact that they have bought a Honda, is enough reason to for a thief to place them very high on his hit list.
To ensure that in the event of an accident both drivers have adequate cover to protect themselves and their vehicles, state laws indicate auto insurance as a must. This is a practice followed almost worldwide, since the 1930’s. Failure to comply with this mandate is a serious offence. You can be fined, or if you’re not that lucky, your driver’s license and/or your vehicles registration can wither be suspended, or worse, revoked. And if it really is your unlucky day, you just mind end up in the nearest local prison!
Most consumers find auto insurance very confusing, and that can’t be further from the truth, once you understand the basics, it is mere child’s play. Purchasing auto insurance for your motor vehicle doesn’t have to be complicated. All you need to do is make a list of the covers you need, and the covers you don’t. You might want cover from theft, accidental damage, fire, and maybe even vandalism. Remember, it’s always better to be safe than sorry!