Owning a vehicle is essential for enjoying convenient transportation. However, owning a vehicle also comes along with a lot of financial risks. Fortunately, automotive insurance offers protection against these risks.
The following are six ways your automotive insurance policy needs to protect you financially.
Paying for auto repairs if your vehicle is damaged in an accident
You need your auto insurance to cover the costs of repairs to your vehicle after an accident. In order to have damage to your vehicle covered, you need to invest in collision coverage.
It's important to note that collision coverage may not be covered in a standard auto policy. You'll need to add on collision coverage if you want to be covered to damages to your own vehicle.
Covering the costs of damage caused by theft
An automotive insurance policy can cover you for financial damages caused by theft. However, you have to invest in comprehensive car insurance to enjoy this type of coverage. Liability and collision coverage won't protect you from losses caused by theft or vandalism.
Paying for medical costs resulting from an accident
Unfortunately, vehicle accidents sometimes result in physical injury. Medical bills can be very high in the event of a serious injury and cause large financial burdens.
It's worth investing in added bodily injury coverage rather than simply opting for the lowest bodily injury coverage required in your state. This can protect you from being in the position of struggling to pay for essential medical care.
Protecting your assets in the event of a lawsuit against you
If you get in an accident with another driver and that driver thinks you're at fault, you could find yourself facing a lawsuit. Lawsuits can be expensive, but the liability coverage offered by automotive insurance policies can cover you for the resulting expenses.
Paying automobile repair or replacement expenses due to natural disaster damage
Your vehicle could become damaged due to a natural disaster such as a flood or hurricane. Standard collision coverage typically won't cover you for these types of damage. However, comprehensive coverage can prevent natural disaster damages from causing you a significant financial burden.
Reimbursing you for the costs of a rental vehicle after an accident
If you get in an accident and your vehicle needs repairs, you'll need an alternate means of transportation. Automotive insurance providers typically offer rental vehicle coverage to cover the costs of acquiring a vehicle to drive until your own vehicle has been fully repaired.
For more information, reach out to a company such as LH Griffith and Company.