It’s mandatory to have car insurance in Canada. If you want to own a car and get behind the wheel, you must also own a car insurance policy.
But even in parts of the world where car owners are not required by law to buy car insurance, the many benefits of car insurance should not be overlooked.
Here are six good reasons to buy car insurance before hitting the road.
Benefit #1: Car insurance allows you to avoid legal trouble
If you live in an area where having car insurance is mandatory, one of the most obvious benefits of your car insurance is that it helps you avoid legal trouble.
If ever the police catch you driving without car insurance, you could face some heavy fines. Depending on the situation, your driving licence could get suspended, and you could face criminal charges.
If your licence gets suspended due to not having car insurance, you must buy car insurance to get it back. And that could prove to be difficult and very expensive.
Benefit #2: It protects you from important financial losses
Having a car accident can also be very expensive, especially if you are the driver at fault. Without car insurance, you would be expected to pay to get your car and the other driver’s car fixed, and you would have to cover everyone’s medical expenses.
When you have car insurance, your insurance company should cover these expenses.
But what if you got involved in an accident caused by an uninsured driver? You could suffer some important financial losses if this driver could not pay to repair your car and cover your injuries. When the other driver is insured, their insurance company will compensate you.
If your policy includes comprehensive coverage, your car insurance could also protect you from car theft and vandalism, which is another benefit of being properly insured.
Benefit #3: It protects your passengers as well
Of course, your car insurance doesn’t simply protect you and the other driver involved in an accident. It protects your passengers as well.
If ever someone in your car with you gets injured due to an accident, whether it’s a member of your family, a friend, or a colleague from work, your car insurance will cover their medical expenses.
Benefit #4: You could get your car fixed more quickly after an accident
Among car insurance’s benefits is that being properly insured can help you save some precious time.
Liability insurance covers the damage you could cause to another driver’s vehicle. But you can also choose to get collision coverage, which would cover the damage caused to your car if you are ever responsible for a collision.
With this car insurance coverage, you could get your car repaired or replaced more quickly after an accident. This is even more important if you need your car every day and know that you wouldn’t have enough money to fix it if it got seriously damaged.
Benefit #5: You can choose the coverage that meets your needs
Another benefit of car insurance is choosing the type of coverage that meets your needs. Liability insurance is usually mandatory, as it ensures you will be covered for the damage you might cause to another driver’s car.
But you can then decide whether you want comprehensive or collision coverage. If your car is old and not worth much, you might figure out that paying for collision and comprehensive coverage might simply not be worth it.
On the other hand, if you have a brand-new car, your insurance company will offer you the option to protect it against collisions, theft, vandalism, fire, and weather-related incidents.
Benefit #6: Having car insurance helps you keep your peace of mind
Finally, having car insurance is a good way to help preserve your peace of mind, which is invaluable.
Of course, having car insurance will not magically make you a better driver. It also won’t guarantee that other drivers will be more careful.
But having car insurance and knowing that other drivers have it also lets you rest assured that whatever happens while you are behind the wheel will be much less catastrophic.
If ever you get involved in an accident, you will be covered. And if another driver gets injured because of an accident that you have caused, you won’t have to worry about needing to cover their medical expenses.
Again, preserving your peace of mind is invaluable. Driving can be stressful, but at least, with car insurance, you won’t have to worry about what could go wrong with your finances if you ever crash into another car or a guardrail.