Finance & Insurance

The Importance of Car Insurance and the Repercussion if You Don’t Have it

Car insurance offers financial protection to its owner in case of damage as a result of an accident. It also covers damages to third-party cars or injuries they sustain. A car insurance claim lawyer can help you understand more about car insurance and procedures to ensure they get fair payment after an accident.

Importance of Car Insurance

1.     Compensation for Accidents Due to Third-Party Faults

Through legal procedures, the person at fault should pay for the damages to your car. But they may not have the financial capability. The court does not enforce the collection of compensation, so one must wait for the defendant to raise money to compensate them. But with car insurance, your insurance claim lawyer will ensure that the insurance company refunds you.

2.     To compensate Others When You Cause an Accident.

Compensation to accident victims could be hefty. Mechanical repairs to the third-party car after an accident cost a lot of money. To avoid that stress, one should take third-party insurance cover.

3.     Assets Protection

Some people feel that accidents are not likely to happen to them and fail to insure their car. In case an accident happens, you will use your resources to repair the cars and cover other costs such as catering for the injuries of the car accident victims and their compensation. Most people cannot afford to do so. They take car insurance cover to take care of such eventualities hence spare their financial assets.

4.     Auto-Lender Protection

Most people take loans to buy cars. In most cases, those cars are the security for such loans. Lenders will not be willing to lend car loans if one does not sign up for car insurance. Most lenders will request that you take the third party and collision covers first before they release the car to you.

5.     State Laws Requirement

The state requires that every car owner takes car insurance because of the above risks. That way, drivers and road users have protection and compensation to ensure that when insured risks happen. They do not lose much financially because the insurance company ensures they remain in the same financial position before the accident.

Repercussions of Not Having a Car Insurance

One can lose their driving license for up to four years

  • It is a traffic violation with hefty fines and could land one in jail for many years
  • Hiking of future insurance premiums
  • Asset liquidation in case of an accident to compensate victims
  • Suing for damages by uninsured drivers could be challenging

Choosing the right insurance company will make insurance claims processing easier after an accident. But one must also hire a knowledgeable auto insurance lawyer with vast experience to ensure that they get compensation due fast.

Car insurance protects you and other road users when an accident occurs. One should review their car insurance needs regularly and take appropriate cover. Seeking the help of a car insurance claim lawyer when an accident occurs ensures that you get fair compensation.


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