Karachi Fun

Why do I need car insurance? The obvious answer to that question in Canada or the United States is very simple. It is the law! If you own a vehicle that is being driven by someone, even if it is not you, the vehicle must be insured. The main reason for the law is to guard against drivers causing injury to others and having no reasonable means to compensate the injured party financially.

Further, most, if not all, Canadian and American insurance companies have a minimum liability. In today’s standards, a million dollar liability does not go very far if someone is injured or there is major public damage. To prevent buyers from choosing cheap, mediocre insurance, a minimum is usually required by the insurer and possibly the province or state.

Aside from the legal aspects of requiring car insurance, there are many other good reasons for taking out a vehicle insurance policy. And some of these reasons or benefits may help the buyer choose what company is best when buying car insurance. In fact, these will be the primary reasons for choosing one policy over another and committing to one company, so the prospective buyer should really understand the specific aspects of the polices and compare.

A few of the more important reasons to choose one insurance policy over another are:

Personal Medical
Whether or not you are involved in an accident with another party or alone and whether or not you are to blame, having car insurance may help with personal medical expenses. If the policy includes this benefit, there will be allowances for therapy, equipment, and other devices or treatments for the medical condition resulting from the accident.

Proceeds Toward Another Vehicle
While in most instances, the insurance payout from a vehicle that has been “written off” never covers the cost of a new vehicle, the insurance is nonetheless very important when a car is “totaled” or even involved in a minor accident. At least the insurance company may pay for the damages to be repaired or offer a book value settlement to be used toward another vehicle.

Rental Car
In the event that your vehicle spends time in the garage or you need time to purchase another vehicle after an accident, having access to a rental car will be helpful. This is one area, however, where insurance companies differ dramatically and the insured never realizes the full extent of the policy until he/she makes a claim and requires the benefit. The length of time a rental is permitted and the cost per day allowance will be important issues when choosing the right car insurance policy.

Loss of Income
In the case of accidents causing severe injuries, insured members may be forced to take substantial time off work. Having a car insurance policy that reimburses for loss of income will be extremely advantageous.

Theft or Fire
Another reason that many people do not think about when searching for car insurance is that the vehicle may not be involved in an accident to require an insurance claim. In fact, for people that own vehicles that are appealing to thieves, insurance coverage would be a good idea. Also, if the vehicle is vandalised or goes on fire in your own driveway, then insurance would be required.

Indeed, there are many valid reasons for purchasing car insurance. The question is not whether you should purchase insurance but rather, how much insurance do you require and what type of benefits do you wish to receive should you make a claim?