The Right Car Insurance Will Protect Yourself and Others – Here’s How

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When most people think about car insurance, the first thing that comes to mind is protection in case of an accident. And while it’s certainly important to have coverage in case you are involved in a collision, car insurance does much more than that. 

Having the right car insurance can protect you and others in several ways. Here are six of the most important ways how proper coverage can keep you safe on the road.

Pay for damages

If you are at fault in an accident, car insurance can help to pay for the damages that you cause. This can include repairs to the other vehicle involved, as well as any medical bills that may result from injuries sustained in the accident. Without insurance, you would be responsible for paying these expenses out of pocket, which could quickly become very costly.

On the other hand, it also depends on what type of insurance you have. For example, if you only have liability insurance, then your policy would only cover damages to the other person or vehicle involved in the accident.

If you have compulsory third-party (CTP) insurance, you’ll have peace of mind knowing that it covers liability for other people’s injuries or death in a motor vehicle accident. CTP insurance is usually mandatory or required for all vehicles in many jurisdictions, including Australia.

If you want full coverage, then you would need to purchase additional coverage, such as collision and comprehensive insurance. So, before you choose, comparing auto insurance quotes is essential to ensure you’re getting the right protection for your needs. Pay attention to the coverage and make sure you understand exactly what is included in your policy.

Prevent lawsuits

If you are involved in an accident and found to be at fault, the other party may decide to sue you for damages. If you have car insurance, your insurer would be responsible for defending you in court and paying any damages that may be awarded. Without insurance, you would be on your own to defend yourself and would be responsible for any damages that are ordered by the court.

Additionally, most car insurance policies include personal liability coverage, which would protect you if you are sued for something that is not related to a car accident. For example, if you are found liable for damages in a slip-and-fall accident at your home, your liability coverage would also help to pay for the damages.

Cover hit-and-run accidents

Car insurance can also help to protect you in the event of a hit-and-run accident. If you are hit by a driver who then flees the scene, your insurance policy can help to pay for the damages, up to your coverage limits. Without insurance, you would be responsible for paying for the repairs yourself, which could be very costly.

This type of coverage is typically included in comprehensive insurance policies. Comprehensive insurance covers damage to your vehicle that is not caused by a collision, such as theft, vandalism, and weather damage. It also covers hit-and-run accidents.

Protect your passengers

If you are involved in an accident, your passengers may be injured. If you have car insurance, your medical payments or personal injury protection coverage can help to pay for their medical bills. Without insurance, you would be responsible for paying these expenses out of pocket. Even worse, if you cannot afford to pay the medical bills, your passengers may sue you for damages.

And if your passengers decide to sue you for their injuries, your liability coverage would help to pay for their damages, up to your coverage limit. So, if you regularly have passengers in your vehicle, it’s important to make sure you have adequate coverage.

Protect other drivers

If you are involved in an accident with an uninsured or underinsured driver, your car insurance can help to pay for the damages. Uninsured motorist coverage would pay for your repairs if you are hit by a driver who does not have insurance. And underinsured motorist coverage would pay for your repairs if you are hit by a driver who has insurance but doesn’t have enough coverage to pay for your damages.

Without this type of coverage, you may have to dip into your savings or take out a loan to pay for them. So, it’s important to make sure you have adequate uninsured/underinsured motorist coverage.

Cover your expenses if your car is totaled

If your car is totaled in an accident, your insurance policy can help to pay for a replacement vehicle. And if you have a loan or lease on your car, you would be required to have this type of coverage.

In this case, comprehensive and collision insurance are the two types of coverage that would pay for a replacement vehicle. Depending on the value of your car, you may want to purchase both types of coverage or just one.

Car Insurance

 

No one wants to be in an accident, but if you are, it’s important to have the right car insurance. The six ways we listed above show how having car insurance can protect both you and other drivers. Make sure you review your policy regularly to ensure that you have the coverage that you need.

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Andy Jacob, Founder and CEO of The Jacob Group, brings over three decades of executive sales experience, having founded and led startups and high-growth companies. Recognized as an award-winning business innovator and sales visionary, Andy's distinctive business strategy approach has significantly influenced numerous enterprises. Throughout his career, he has played a pivotal role in the creation of thousands of jobs, positively impacting countless lives, and generating hundreds of millions in revenue. What sets Jacob apart is his unwavering commitment to delivering tangible results. Distinguished as the only business strategist globally who guarantees outcomes, his straightforward, no-nonsense approach has earned accolades from esteemed CEOs and Founders across America. Andy's expertise in the customer business cycle has positioned him as one of the foremost authorities in the field. Devoted to aiding companies in achieving remarkable business success, he has been featured as a guest expert on reputable media platforms such as CBS, ABC, NBC, Time Warner, and Bloomberg. Additionally, his companies have garnered attention from The Wall Street Journal. An Ernst and Young Entrepreneur of The Year Award Winner and Inc500 Award Winner, Andy's leadership in corporate strategy and transformative business practices has led to groundbreaking advancements in B2B and B2C sales, consumer finance, online customer acquisition, and consumer monetization. Demonstrating an astute ability to swiftly address complex business challenges, Andy Jacob is dedicated to providing business owners with prompt, effective solutions. He is the author of the online "Beautiful Start-Up Quiz" and actively engages as an investor, business owner, and entrepreneur. Beyond his business acumen, Andy's most cherished achievement lies in his role as a founding supporter and executive board member of The Friendship Circle-an organization dedicated to providing support, friendship, and inclusion for individuals with special needs. Alongside his wife, Kristin, Andy passionately supports various animal charities, underscoring his commitment to making a positive impact in both the business world and the community.