Even though most people think that having car insurance is an option, it is actually mandatory in most countries. The Motor Vehicle Act actually states that the car owner should also buy a comprehensive cover in addition to car insurance. Therefore, whether you have purchased a new car or a used one, it is important for you to ensure that it has been covered by insurance. Besides owning auto insurance being a legal requirement, there are a lot of benefits that you are likely to enjoy such as getting protected against any financial liabilities.
Car insurance covers you from totally losing your car. It is possible for your car to get totally lost through theft, and chances are that you may not be able to recover it. This is because it is possible that the thief may end up breaking it down into parts and selling each part on its own. It is also possible that the thief may decide to sell it to another country, making it difficult for the police to track its location especially after it has crossed the borders. It would be quite heart-breaking for you to make this kind of investment only totally lose it through theft or an accident.
In such a case, the importance of taking auto insurance is that you are sure that you are going to get a new car after losing your car to the thieves or an accident. Auto insurance will also cover you from the theft of car parts. When most car thieves fail to steal the car, they end up removing some of the car parts that are valuable. Even though the car may still be intact and running, you will be required to make expensive replacements by purchasing new car parts. Fortunately, if your car is insured, the insurance company will ensure that you have been compensated for the losses.
In case your car was involved in an accident and it has been damaged to an extent that it cannot move, the insurance company will ensure that you have been provided with a courtesy car to use while you wait for a new one. This provides you with the ability to take your children to school and drive to your place of work as usual. The period of time that you will keep the courtesy car, however, depends on the details provided in the policy.
A good auto insurance company also provides you with the ability to enhance your cover to cater for some of the risks that would be considered uncommon. It is possible for you to be caught in political violence, and we know that they don’t end well. People may end up vandalizing public items and throwing stones and other items that may end up damaging your car. Normally, if you have not enhanced your insurance, the insurance company would not compensate you for such risks. Enhancing your insurance allows you to get covered for a broad range of risks.