July 28, 2022


8 Life Examples of Why Car Insurance is Important

Every day, many of us jump into our cars and enjoy the freedom of the open road. 

But do we think about the potential risks? Sometimes, we get so used to driving that we forget about the dangers that can pop up. 

That's where car insurance comes in – it's like a safety net for when things don't go as planned. 

Why do you need car insurance? For financial protection. 

In this article, we'll examine eight real-life situations that show why car insurance is so necessary.

1. Picture a regular Monday: you're driving, and suddenly, you accidentally hit something like a pole, curb, or tree. Thankfully, you're okay, but your car takes a hit. And luckily, you have comprehensive collision auto insurance.

Comprehensive collision auto insurance, often called "C&C," is like a safety net. With it, you only have to worry about paying a deductible, a set amount from your pocket, before your insurance covers the rest of your car's repair or replacement costs.

Basically, comprehensive coverage protects your wallet. It keeps you from paying a large lump sum if your car gets damaged in unexpected accidents. 

2. A storm with fierce winds strikes, causing a nearby tree to topple onto your parked car, shattering the windshield. Your windshield cracked, and you need to replace it. Comprehensive auto insurance will be there for you; you only need to pay a deductible! With comprehensive insurance, you're ready for the unexpected, and you can keep going with peace of mind, knowing your finances are safer.

3. Imagine this scenario: you're leaving a parking lot, and you accidentally collide with another car, causing damage to both vehicles.

Even worse - the other person doesn't have any insurance. 

If you have state-minimum car insurance (Liability Only) and hit an uninsured driver, you may be liable for all the expenses not covered in your policy. You may have to pay out of your pocket to cover the damage to your vehicle and yourself - a potential financial disaster we want to help you avoid. 

OCHO recommends buying as much liability protection as your budget will comfortably allow. You can read more about the financial risks of driving without insurance here.

State minimum insurance is there to protect everyone else, not you and your family. 

According to information from the Insurance Institute for Highway Safety (IIHS), the average cost of repairing a car after an accident is slightly over $4,000. This amount can significantly rise depending on the type of vehicle involved. 

This example highlights the importance of having the right auto insurance coverage in place to handle such situations with as little stress as possible.

4.  Now, imagine cruising through a scenic stretch of road through breathtaking natural surroundings, hair flowing in the wind. Suddenly, a wild animal darts onto the road, colliding with your car and causing damage. In this scenario, having comprehensive coverage within your auto insurance policy becomes a lifesaver. You're only responsible for paying the deductible for the necessary repairs, relieving you of a substantial financial burden.

5.  According to a report by the World Health Organization, you are four times as likely to have an auto accident if you use your phone while driving, with text messaging having the most severe impact. To read more about the most common car accidents in the US and how to prevent them, you can check out our blog here.

Now, let's explore the scenario where a moment's distraction—texting while driving—causes you to miss a stop sign. 

A multiple-car collision is triggered, causing injuries to several individuals. Statistics show that the average emergency room visit for auto accident-related injuries costs approximately $3,300 per person. In cases requiring hospitalization, the average expense soars to $57,000.

Adequate liability coverage within your insurance safeguards you from the burden of hefty out-of-pocket payments. OCHO Plus combines liability with uninsured motorists and medical pay coverage to help provide more adequate coverage.

Let’s take a break and look at what the numbers mean in your insurance policy:


6. Someone hits your car, and even though they have auto insurance, their coverage is not enough to protect and repair your vehicle or property. It happens more often than one would think.

There are a lot of people who get insurance without actually looking to see which one is the one that suits them best, or the more comprehensive insurance is too expensive for them. Therefore, they're often underinsured in most accidents.

Nonetheless, underinsured auto insurance coverage serves as a protective shield, preventing you from being financially vulnerable in such challenging situations.

7. Imagine your city experiencing days of constant rain, leading to a significant flood that engulfs your car and inflicts substantial damage. Your vehicle, once your reliable mode of transportation, now faces the daunting task of recovery.

However, this is precisely where the comprehensive coverage aspect of auto insurance reveals its true worth, serving as a valuable asset that provides essential support when needed most in these unexpected and challenging situations.

With comprehensive coverage, you can navigate the daunting aftermath of a flood with greater peace of mind, knowing that your insurance has your back.

8. While on the road, you suddenly find yourself caught in the unfortunate scenario of a hit-and-run incident—a predicament that approximately 13% of drivers in the United States can unfortunately relate to. In a hit-and-run accident, another driver involved in the incident flees the scene without stopping to exchange information or offer assistance, leaving you uncertain and vulnerable.

The unsettling reality is that uninsured drivers vary significantly across states, with some areas reporting alarming figures, such as 16% in California, 26.7% in Florida, and as low as 4.5% in Maine. In these distressing instances, it often turns out that the perpetrator is an uninsured motorist, which can be particularly troublesome as it leaves you responsible not only for the damages to your car but also potentially for your well-being.

Thankfully, uninsured motorist auto insurance coverage ensures you're not stranded in the aftermath of such irresponsible actions.

As you're selecting an auto insurance policy, remember that different policies offer varying types of coverage. They're not all the same. So, make sure to be responsible and choose the one that aligns with your needs! Contact our team today to explore your options!

Getting insurance is about securing a safety net for the future. When the time comes, you'll be ready to protect what matters most. Remember, knowledge is power.