The Hidden Benefits of Auto Insurance
Car Insurance is Mandatory, But What's In It for Drivers?
Mar 30, 2009
Imagine a world without auto insurance. A car is driving down the road and makes a sudden decision in a lapse of judgment that results in causing damage to another car and personal injury to the driver and his or her two passengers.
Though the parties involved in the auto accident are aware of who caused the damage and the personal injury, it doesn’t really matter because without auto insurance, both drivers are responsible for the cost of their own auto repair and medical bills completely out of pocket.
That doesn't seem very fair, does it? After all, shouldn't the driver responsible for the auto accident pay for damages?
This is precisely why auto insurance is so beneficial to drivers. Without sufficient auto insurance coverage, drivers can quickly and easily bury themselves in a mountain of debt and legal problems that could cause years to dig out of.
Auto Insurance: Benefits for States
Without auto insurance, a state’s resources would be overrun. Courts would be clogged with litigation for personal injury and property damage, costing the state inordinate amounts of money. As a result, citizens would likely see their taxes increase.
Auto Insurance: Benefits for Drivers
In all 50 U.S. states, auto insurance is mandatory to at least cover liability auto insurance should a driver be found at fault in an auto accident. But regardless of any mandate for auto insurance, the benefits of auto insurance for drivers are numerous:
- provides a lifeline in the event of an auto accident
- comes to the rescue in cases of keys locked in car, flat tire, dead battery, and out of gas (otherwise known as roadside assistance)
- if auto accident is the fault of driver, all legal costs are covered as well as costs to repair other driver's vehicle and his or her medical expenses (liability auto insurance)
- if auto accident is not the fault of driver, medical costs and auto repair are paid by the other driver’s auto insurance
- pay only a deductible set by the driver; auto insurance pays the rest
- auto insurance coverage extends to guest drivers
- driver and passengers are covered for medical, lost wages, and household expenses regardless of fault (personal injury protection)
- additional coverage for medical payments
- coverage if the insured is struck by a car while walking
- coverage if an uninsured/underinsured car causes an auto accident
- protection in the event of vandalism, theft, animal strikes, hail, fallen trees, and windshield cracking (comprehensive auto insurance)
- coverage for damage to vehicle (collision auto insurance)
- coverage for damage to personal property inside the vehicle such as luggage or clothing
- rental reimbursement if car is being repaired
- coverage for towing and labor if car is disabled and cannot be driven
Auto Insurance: The Bottom Line
While auto insurance may cost drivers over $1000 per year on average, its hidden benefits such as rental reimbursement; towing and labor; roadside assistance; auto repair and medical coverage; and coverage for cracked windshields, theft, vandalism, and acts of God make this expense worth it in the long run.
See related articles, "22 Easy Ways to Save Money on Auto Insurance," “How to Find the Best Deal on Auto Insurance," and "What to Do After an Auto Accident."
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