Car insurance is mandatory somehow. You might ask yourself why I have to pay an amount for money in exchange for something that I might not need. Some people may not want to pay for insurance companies and prefer to keep the money. In fact, insurance is something that you really need. Why? Based on my personal experience, it helps a lot.
Basically, car insurance is a contract that you sign with an insurance company to provide you the necessary financial protection against financial losses in case of accidents or theft. The insurance company charges you with premiums in exchange of this financial protection service. This service also depends on the type of the insurance. Why does insurance help? I’ll tell you a story. But before, you have to know that when you pay for car insurance, you will not get a refund unless you’re planning to cancel in the middle of the terms after you’ve paid your premiums in advance, and depending on why you’re cancelling. However, you can’t when the term expires. In other terms, you might pay for an insurance, but you might not really benefit from it if nothing happened, such as an accident or theft. Actually, I know that you won’t wish for something to happen in order to benefit from insurance. I know that you would think that why you would pay for a car insurance if you will barely benefit from it. But here’s the story.
My family has been paying for car insurance for more than 15 years. The last 4 years, we bought a new car and we would pay for comprehensive car insurance every year. This one basically covers any type of risk that the contract doesn’t exclude. In each of the last 4 years, we had minimum 3 accidents per year. It was bad luck for us, but at least, we had the insurance to cover the car damages fees. I even remember one accident that cost more than 7000$, and the insurance covered it in accordance with the contract. If we didn’t have the insurance, we wouldn’t have been able to pay this amount at that time by ourselves. What happened exactly is that the insurance company would cover the damages expenses of our car and the other person’s car included in the accident (if there was one, depending on who was wrong in the accident).
The moral of the story is that we would pay a large amount each year, but the money wasn’t really wasted because sometimes the accident would cost more than we actually paid to the company, but the insurance company is obliged to pay it. I really don’t like accidents and nobody does, and I hope they don’t really happen, but this is why I think car insurance is important: financial protection.
Types of car insurances vary. Their cost also depends on the types:
Third- Party insurance policy: it’s a basic policy that does not provide any type of coverage to the insurer, but of the latter causes an accident in which a third-party is included, the policy will cover the latter’s physical injury, property damage, and liability. In other terms, it protects the insurer from any legal liability that arises from an accident they caused.
Comprehensive car insurance: as the one mentioned above, it is the insurance that protects you, your vehicle, and your passengers financially in case of any accident caused by you or by a third-party. It is much more like what we call all-risk insurance.
Hani started his career in Automotive Journalism when he was 10 years old as a talented photographer for automotive, hanging around cars all the time has created a passion for the automotive industry since day 1.
He is now a full time auto journalist and content creator for Motor 283.
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