August 3, 2022

8 Life Examples of Why Car Insurance is Important

Driving is fun, it’s one of the little things in life that we don’t think about much and still, it definitely makes us happy. 

While we normally think about cars for transportation, it is important to recognize that there’s always some sort of danger on the road and that is why car insurance matters. 

Here are 8 life examples of why car insurance is important:

1. Let’s say it’s your average Monday and you accidentally hit something with your car, this could be a pole, a curb,  a tree and you are okay but your car gets damaged. When you have collision auto insurance coverage you only have to pay a deductible, this is the amount of the repair/replacement cost you have to pay out of your own pocket before the insurance kicks in to pay the rest.

Ocho the owl hitting a tree from the back of his car.

2. There’s a storm with fast and strong winds, you parked your car near a tree and it fell down during the storm.Your windshield cracked and you need to replace it. Comprehensive auto insurance will be there for you and you’d only need to pay a deductible!

A fallen tree and a car with damaged windshield.

3. You’re in the parking lot and didn’t see a car when you drove out. Now you have to repair your car and pay for the damage done to the other car. The Insurance Institute for Highway Safety (IIHS) reports that during a collision, the average cost to repair a car after an accident is just over $4,000. But this amount can climb dramatically by the vehicle that you hit. That’s why getting auto insurance is safer, easier and faster in problem solving.

Ocho the owl in his car looking worried and a parked car with scratches.rscratching acar

4. You're on vacation and for some inexplicable reason the father of Bambi decides to pay a visit to the road, you are not able to stop, you hit a deer and your car gets damaged. Since auto insurance knows that these wild animal visits can happen, they got you covered with your comprehensive coverage and you’d only pay a deductible for repairs.

A warning traffic sign with a deer silhouette. Ocho the owl looking pissed and his car is damaged from one side.

5. You got distracted while texting and driving and didn’t see a stop sign. You hit other cars and several people are injured in a multiple car pile-up. In an accident, the average emergency room visit for an auto accident is $3,300 per person. If hospitalization is required the average stay is $57,000. When this happens you need to be sure that your insurance has a high amount of liability coverage because when that does not happen, you’ll end up paying the rest.

Three cars pile-up. Ocho the owl texting and driving looking surprised.

Note: When you get insurance, take a look at the numbers. They are written in simple numbers, but they represent that in a thousand. Here’s how it works.

THE NUMBERS IN YOUR INSURANCE POLICY

25/50/50
25. This amount is the  most which will be paid for anyone person’s bodily injury liability losses from an accident.
50. Corresponds to the total that your insurance has to pay for everyone  injured, including - hospitalization.  It is the max amount of money for everyone involved in the accident.
25. Corresponds to what you’ll be covered in property damage (that you did or that others  did to your car).

6. Someone hits your car and even though they have auto insurance their coverage is not enough to protect and repair your car or your property.  This tends to happen more often than one would think. There are a lot of people that get insurance without actually looking which one is the one that suits them best. Therefore, they’re often underinsured in most accidents. But when you have underinsured auto insurance coverage that helps you for these cases, you won’t be left alone.

Car hit by Ocho the owl car. Ocho's car hood is open and damaged.

7. It has been raining non-stop in your city and there’s a major flood, your car gets trapped in it and it gets damaged because of the water. Having auto insurance will help you because of comprehensive coverage in these situations.

Ocho the owl trying to drive in a flood.

8. You’re on the road and someone hits your car and then disappears. In the U.S approximately 13% of the drivers on the road don’t have insurance. Yes, it varies depending on the state, in California it’s 16%, in Florida 26.7%, in Maine 4.5%. But the point here is, when you encounter a hit-and-run driver it’s probably because they’re uninsured motorists. That means they won’t be able to pay for the damage done to you or your car. Needless to say, if you have uninsured motorist auto insurance, coverage will kick in to help you out.

Ocho the owl driving but looking sad. His car has lots of scratches on one side.

When you are shopping for an auto insurance policy, remember that not all insurance policies cover the same types of loss and not all insurance policies have the same coverages. Be sure to get the one that suits you best! 

Getting insurance is not asking for something bad to happen, it means you’ll be covered to protect what matters when and if the time comes. Knowledge is power, right?