Why Having Car Insurance is Important

On The Road

5 Reasons Why You Need Car Insurance

Many of us have vehicles to get from one place to another and while cars are convenient, we should also recognize that driving can be dangerous.  You may have years of driving experience, obey all traffic laws, and keep on top of your car maintenance, but you never know when another driver, cyclist, pedestrian, severe weather, or other natural event could cause an accident that involves you and your family.

Here are five reasons why having car insurance is important.

1. It’s the law!

In Canada, you are not authorized to drive a car if you do not have auto insurance.  Although insurance payments may seem costly, the monetary penalties of driving without it could add up to thousands of dollars. For example, in Ontario, fines range from $5,000 to $50,000.  You could also face a suspension of your driver’s license and, in some jurisdictions, jail time.

According to industry stats provided by the General Insurance Statistical Agency (GISA), the average cost of an auto liability claim was $92,643 for bodily injury and $5,480 for property damage in 2015.

2. Pay now to save later.

In the event of a collision, having coverage protects your wallet from costly and unexpected expenses.  A policy with liability coverage, accident benefits, and collision coverage could help you and your family save thousands of dollars should an accident occur.  Ask your local agent about customizing your policy to fit your current lifestyle. Be wary of auto insurance myths and make sure you’re properly informed.

3. Protect yourself and others.

Insurance is there to protect you from scenarios that could have you paying for unforeseen expenses.  Because you’ll never know who you’re sharing the road with, unavoidable accidents could happen and, unfortunately, may leave you or someone else in need of extended medical care.  What if you couldn’t work anymore?  Accident benefits coverage could help you and your family cope with a sudden inability to return to the workforce, the ongoing costs of caring for dependants (such as your children), and more.  Your car insurer can also help protect your assets from bodily injury lawsuits made against you through your policy’s liability coverage.

4. Insurance is not only for collisions.

Some people think if they’re good drivers, they won’t need car insurance.  But your insurance is there for more than just collisions.  What happens if your car is stolen, destroyed in a fire, or vandalized?  No one can predict the future and operating a motor vehicle without insurance is not only illegal, it can have a far-reaching impact on your life – and the lives of others.

5. Customized policy features.

If you’re worried about getting a quote that won’t be catered to your needs, remember that insurers can help customize your policy with added features to help ensure you have the coverage that suits you and your family.  Having a good relationship with your agent can help you make informed decisions.

For example, a few of the special features Allstate offers include:

  • Comprehensive Coverage, which covers physical damage to your car that isn’t the result of a collision, such as theft, vandalism, and fire.
  • Loss of Use Coverage, which reimburses you for alternative transportation if your vehicle is being repaired as a result of theft or damage.
  • Disappearing Deductible, which means your deductible decreases every consecutive term you go without a claim until it disappears.

While paying into something you don’t use regularly – and hopefully will never need to use – can seem frustrating, once you consider what could happen if you didn’t have it, is it really worth the risk?