Why Car Insurance is so Important in United States?

Car Insurance simply means financial protection against loss/damage as a result of car accident or theft. This type of insurance is basically purchased by individuals so as to get rid of paying accidental expenses from their own pocket.Under the plan, insured is liable to pay a certain sum of money i.e premium(consideration)on the other side, the insurer(company) is liable to compensate all(or part )of loss arising on account of the accident.Although an individual may be very confident about his driving, there are always some chances of mishappening to occur, as and when you drive a vehicle.It may be either due to our's negligence or other's negligence.In such situations, car insurance is surely a big saver that alleviates monetary and mental pressure to a great extent.

Car Insurance is a relevant plan in the modern phase, as the number of accidents is rising at an intense rate.So it is wise to be careful before any accident occurs and be covered under specific car insurance plan.

Car Insurance Premium: It is that amount of money that is paid by an insured to the insurer for active coverage.It is deemed as a responsibility of insured to make timely payment of premium money.The amount can vary depending on various factors.It should be your responsibility to always check with your agent about the plan premium.Paying less premium isn't always good.It often means that you are getting less coverage.Simply, higher the premium you will pay, higher the coverage you will get.If you want less deductible, you have to pay more.Also, there are a variety of factors in auto policy that affects the amount of your premium.

Some of the factors that determine the amount of premium are driving violations, vehicletype, credit rating, education, driving history, years of driving experience, history of car insurance, driving distance to work, geography, occupation, and lot more.The premium for car insurance is usually paid monthly or semi-annually.However, companies also give you an option to choose either payment made on quarterly or annual basis while setting up your plan.You can also make premium payment conveniently via automatic payments from your savings account.As most companies offer an online mode of payment where you can simply log in and monitor your policy and payment history.


Car Insurance is not just a piece of paper, in fact, it gives you smart, satisfied coverage along with mental relaxation.It doesn't matter whatever the situation is, you will always feel confident and protected at every step.If someone asks you, WHY TO BUY CAR INSURANCE? your answer should be it is mandatory.It's illegal to drive a car without proper insurance coverage.Additionally, it safeguards you from any man made the activity or natural disaster like theft, earthquake, hailstorm along with third party damages.Or we can say that it is developed to guard drivers and their passengers from monetary hardship after any unfortunate incident.

At some point of time, it may be difficult to understand car insurance. So, for appropriate and better services, certain guidelines of plans should be followed by insured.It will not be wrong to say that car insurance acts like a good friend at the time of emergency.As it covers your losses, thus saves you from paying hefty medical bills from your pocket.Car insurance can offset huge loss of insured in the following manner:

1. Car insurance offers benefits to legal representatives of a deceased person in case accident results in death.

2. Another advantage of getting covered under car insurance is that it covers the repair expenses of the vehicle that is destroyed in an accident.In addition, to fix the vehicles, victims can also seek for funeral expenses.

3.Car insurance also provides coverage for legal fees that are brought to you as a cause of an accident.

4.Moreover, it ensures coverage for damage caused by other than an accident, say theft, vandalism, fire etc.

5.Insurance companies also give insured due advantage of additional premium discounts if they (insured) owe more than one policy with the same insurer.In fact, it also offers extended coverage to others driving your vehicle with your permission.

6.It ensures you peace of mind that you are financially safe after an accident.


Like buying a car, there is no single option for best insurance solution.Just make sure that price is not the only sole factor that you consider while buying insurance for your car.At present, insurance companies are offering a wide network of policies and you should choose a product that fits your needs and circumstances.Proper knowledge of different types of insurance policies can help you to take wise decision.Here the list of various types of car insurance is represented:-

1.Compulsory Third Party-This type of insurance protects that person who is injured by an insured driver that includes pedestrian, cyclists and other road movers.This type of insurance is important because it is compulsory in all states and union territories.It is illegal to drive a vehicle if it is not covered under this plan.In this policy insured is not covered for his own vehicle, or any other property nor this policy cover any legal liability other than personal injury or damage caused to another vehicle while you are driving.

2.Liability Insurance: This type of insurance offers coverage in the case when you are responsible for the accident.It will cover repair costs as well as medical expenses resulting from an accident.Most states have a compulsory minimum requirement for liability insurance that insured must cover.If you are able to pay for this, it is a good idea to have liability insurance coverage above your state's minimum requirement.As it will give you extra protection in case of need.

3. Collision Coverage: This is also an advantageous type of car insurance coverage.Under collision coverage, repair expenses will be paid, in case if your car is totaled; it will pay the value of your vehicle.If your car is old, it may not be worth to cover it under collision coverage, but if it's new, you should buy this plan.As it will help get you back where you were before the accident.

4.Comprehensive Coverage: In comprehensive coverage, protection is provided to insured in case if its car is damaged/broken in events other than accidents.It may be due to floods/hailstorm/earthquake/riots/theft/vandalism. etc.Other than collision, this coverage gives you relief in case of disastrous incidents.It is also one of the best coverage if it fits your budget.Although it is bit costly, as anti-theft and tracking devices on the car make it more expensive.But carrying this type of insurance will further add to your safety.

5.Personal injury protection: In personal injury protection policy, coverage is provided to insured along with all those of your passengers, no matter who is responsible for the accident.It should be considered by individuals while going for an insurance plan.As the cost of damage from an accident can rapidly add up, so in order to cover them this policy should be adopted.


Every person who owns a car will surely want to save his asset from any future inevitable loss, as it is one of our biggest investment.For, this purpose we move for insurance policies to shield our valuable asset.Although, there are multiple options available for individuals to purchase insurance policies, in this world of internet you may also purchase policies online.These policies are relatively cheaper and avail maximum benefits.An individual may get a chance to discover a large variety of plans through online mode.
Buying a policy online, someone has the upper hand than those buying offline(through other channels).Let's have a look:

* The biggest benefit of online purchase is that you can buy your car insurance anytime, anywhere as per your convenience.Along with this, it saves your time in meeting with insurance agents/representatives that guide you before buying a plan.Online insurance also reduces the starting costs of the policy.

* It has already mentioned that by sitting at home, you can view over multiple varieties of policies.Also, you can compare quotes of various policies on the internet to receive one of the best deal.

* Buying online car insurance provides you with more transparency.As sometimes your agent may or may not provide with all the information about the policy.But, while purchasing online you get all the clauses and rules mentioned regarding the policy.

For example, every insurer gives details about what is covered under the policy and what is not.On the ground of such information, you can compare different plans and choose the one that perfectly meets your demand.

*Furthermore, online car insurance provides you with easy and instant policy.Purchasing online is a much faster process as compared to other channels.Once, you decided that which insurance plan you want to get, you can log in to insurer's website and pay the premium money with in short time period.As you purchase your policy, you will get details of policy documents through an email.It approximately takes 5-10 minutes to complete the whole buying process.You need not stand in queue for hours to get policy documents in your hand.

There is no doubt that purchasing a policy online gives you various benefits, but side by side it is important to understand that it requires proper research and inquiry before actual buying of policy.You should be aware of all the facts and conditions of policies that what are you getting coverage for.

After discussing, it can be said that car insurance plays a vital role in providing protection to car owners in adverse conditions.As it makes insured feel more secure and safe by covering their financial loss thus lessening their mental unrest.

Why Vehicle Insurance is must in United States?

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