Auto insurance is something we all know we need as drivers. In fact, in the majority of states throughout the U.S, carrying auto insurance is required by law. The main purpose of auto insurance is to protect drivers from financial loss in the event of an accident. However, there are several other benefits that come with auto insurance that you may not be aware of. Here are 5 surprising benefits of auto insurance that you may not know about.
1. Auto Insurance Can Help Cover the Cost of a Rental Car
In the event of an accident, your car may end up in the shop for repairs, leaving you without a mode of transportation for days or even weeks. This can be a major inconvenience, especially if you rely on your car to commute to work. Fortunately, many auto insurance policies will cover the cost of a rental car while your car is being repaired. This means you can still get around without having to worry about paying out of pocket for a rental car.
2. Auto Insurance Can Cover the Costs of Vehicle Theft
Car theft is an unfortunate reality that many drivers have experienced or know someone who has. In the event that your car is stolen, your auto insurance policy can help cover the cost of the stolen vehicle. Depending on your policy, you may be reimbursed for the value of the car, or receive a rental car while the stolen vehicle is being searched for.
3. Auto Insurance Can Help Pay for Medical Expenses
If you or your passengers are injured in an accident, your auto insurance policy can help cover the cost of medical expenses. This includes hospital stays, surgery, medical procedures, and physical therapy. This can be an enormous financial relief, particularly if you don’t have health insurance or have a high deductible.
4. Auto Insurance Can Protect Your Assets
If you’re at fault in an accident and don’t have enough coverage to pay for the damages, your assets such as your house or savings account could be at risk. However, having adequate auto insurance can protect your assets and help cover the costs of damages and medical expenses associated with accidents you cause.
5. Auto Insurance Can Provide Legal Defense
Lastly, auto insurance can provide you with legal defense in the event that you’re in an accident and are sued by the other party. Your auto insurance provider will cover the cost of legal representation and may even settle the lawsuit on your behalf. Without auto insurance, you would be responsible for hiring your own legal defense, which can be expensive and time-consuming.
In conclusion, auto insurance offers several benefits that go beyond just protecting you financially in the event of an accident. From covering the cost of a rental car, medical expenses, and legal defense, to protecting your assets and providing coverage in the event of a vehicle theft, there are many reasons why auto insurance is essential for all drivers. Make sure you’re adequately covered with a policy that meets your needs and provides peace of mind on the road.