You saved up a good amount of money to buy a car , but are you thinking about saving on insurance? Have you ever imagined crashing your vehicle or having it stolen? It will be a loss that will come out of your pocket. That’s why car insurance is a great option for those who want more vehicle protection .
A driver with auto insurance is guaranteed more peace of mind in their lives2. After all, the insurance provider will offer assistance and even pay for expenses in the event of mishaps, mechanical malfunctions, or even harm to other people.
Curious to learn more about this subject? After that, read on to learn why getting auto insurance is crucial.
How does car insurance work?
Auto insurance serves as security for the acquired asset. In other words, if you purchase insurance, the insurer will pay for any losses you sustain, provided that the loss is covered under the terms of the policy. As a result, having auto insurance increases safety and protects your car in case of an emergency.
There are partial insurances — which only cover some of the events mentioned below — and complete insurance that provide total security for the driver and third parties.
Robberies and thefts
If the car is stolen or stolen , the insurance company will reimburse up to 100% of the car’s list value so that the driver can buy another one.
Accidents
In the event of an explosion, rollover, fire, or accident, the insurance company may cover the costs of repairs. The motorist is responsible for paying the deductible; the insurance company will reimburse the remaining amount.
According to the provisions of the policy and the agreed-upon coverage, the holder currently receives reimbursement in full for the car in the event of a total loss.
Damage to third parties
If the driver is responsible for an accident that damages other cars, destroys poles and injures people, the insurance may cover the repair of other vehicles, hospital expenses and even compensation for the victims.
Personal passenger accidents
Auto insurance can offer protection to passengers in the insured car. It has coverage that can cover the costs of hospitalizations, medication and compensation in the event of disability or death.
Mechanical failures
Car insurance is interesting, especially for those who have a pre-owned or used car , since it covers vehicle repairs in the event of mechanical defects , for example. There are also packages with 24-hour mechanics, locksmiths, assistance with changing tires, and so on.
Financing
Financial protection insurance has coverage that can even cover some of the financing installments in the event of unemployment and pay off the car if the policyholder dies or becomes unable to work.
What are the advantages of car insurance?
Unforeseen events happen at any time or place. Even a car in the garage is subject to risks. That’s why it’s important to have auto insurance that offers you more vehicle protection.
Below, we will show you the main advantages of hiring complete protection :
Security and peace of mind
The truth is that having car insurance makes our lives easier, because, in case of unforeseen events, you will have support to resolve the issues. For example, imagine if on a car trip, the vehicle stops working, just contact the insurance company and request a tow truck and a taxi. Having auto insurance minimizes the stress caused by the situation .
Economy
Have you ever thought about how much you would have to pay if your car was completely lost? What if your vehicle was stolen? There are also frequent mechanical repairs, especially in semi-new and used cars.
The amount that can be paid for insurance is not even close to what you would need to spend to replace the car. Therefore, it is an investment that generates savings in the long term.
Is it worth having insurance with financing?
Leaving your car insurance policy until later can be dangerous, as your car will be vulnerable. Therefore, it is best to ensure greater vehicle protection when you take out the financing .
What’s more, hiring is easier at this time . This is because you don’t need to get quotes from several different insurance companies, compare values and analyze the cost-benefit and only then hit the nail on the head. The sales consultant himself presents several proposals and you choose the one that best suits your budget and needs. And you can now take out insurance right there in a simplified way.
Not to mention the economy. We know that the initial costs of a car — new or used — are usually heavy. It includes the entrance fee, documentation costs, taxes, etc.
Car insurance is essential and we already understand that, right? But we also know that when we are buying a car this value can be a bit heavy on our pockets. By ensuring protection with financing, it is possible to dilute the insurance value in car payments . This way, initial costs are a little smoother.
But it’s good to remember that regardless of how many times you share the car, the insurance is valid for 12 months, okay? After this period, it is necessary to renew the contract to maintain protection.