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Do You Really Need Car Insurance?

May 24, 2011

There are many people out there who begrudge paying for car insurance simply because it is something that they feel they are never going to use.  You may hear some of these people telling you that they don’t feel they should be paying money to a car insurance company if they are not going to benefit from it.  You may also hear some people saying that it is money down the drain.  So do you really need car insurance?

The simple answer is yes, you do. Car insurance is a legal requirement for anyone who is driving a car on the roads.  However this does not stop a number of people from driving without it anyway.  The danger of having no insurance is that you could end up in an accident and face financial ruin as well as a fine or prison sentence for not having it.

Hopefully you will never have to use your car insurance but it is there as financial protection just in case.  Nobody ever wants to claim on their car insurance and that is why they may feel that this money is something that is wasted.  However we just don’t know what is around the corner and one day you may very well be glad that you had your car insurance policy.

For example, if you had a car accident and it was found that you were responsible for this accident, your car insurance company would take care of any financial damages.  The type of cover you have on your car will determine how much the car insurance has to pay out.  If you had fully comprehensive cover then the car insurance company would take care of any damage to the other car (if there was one involved) as well as any medical expenses of the other driver.  The insurance company would also be responsible for taking care of your medical expenses and any repairs to your own vehicle.

You could opt for Third Party Car insurance instead but this would mean that your insurance company would only have to pay for any damage to the car of the other party and for medical expenses etc.  Your own medical expenses and car damages is not covered.  As you can see this is not a great policy to have.  There are some car insurance companies who will only offer Third Party car insurance to some drivers.  New drivers and young drivers can often only get third party car insurance because the insurance company sees them as a bigger risk.

It is very important to make sure that you have the cover that you need.  A lot of people are paying for car insurance and they think they are covered for much more than they actually are.  This assumption can leave you in financial trouble should you ever have to make a claim.  It is important to check with your car insurance company if you are unsure of anything in your policy.