Auto Repair Insurance: What To Know
Experts estimate that over 12% of drivers don't have auto insurance coverage.
While the rest of the drivers on the roads have auto insurance, some might not have enough coverage or the proper protection.
One coverage you can add to an auto insurance plan is auto repair coverage. Your insurance company may pay for most damages your car encounters from accidents or other perils when you have this coverage.
Do you need this coverage? Continue reading this guide to learn more about this coverage, as this will help you determine if you need it.
The Basics of Car Insurance
Car insurance is a product that all drivers need, and you need it for several reasons.
First, having car insurance provides a way to follow the law. If you drive without it, you're breaking the law, as almost every state requires it.
Driving without car insurance might lead to tickets, fines, and a loss of your driver's license.
Next, having auto insurance provides a way to reduce your risks. Risk is something that every person has if they drive a car.
You have the risk of getting hit by another driver or causing an accident yourself. In addition, you have the risk of getting injured from these accidents or experiencing damage to your vehicle.
Finally, having car repair insurance or used car repair insurance provides a way to protect your finances.
If you cause an accident and have insurance, the person you hit may not sue you personally. They may collect from your insurance policy instead.
If your car has damage from the wreck you caused, having the right insurance can provide compensation for your vehicle, too.
These are some of the top reasons you need insurance coverage, and why auto insurance is important for anyone who drives or owns a vehicle.
The Types of Coverages that Pay for Your Damages
When you're buying car insurance, you'll get the chance to customize your policy. To do this, you'll need to know the options and what each type offers. Here are some of the primary options you can choose:
Most car insurance plans come with liability coverage. While this coverage doesn't directly benefit you, it provides secondary benefits for you.
The main purpose of liability insurance is to possibly compensate other drivers that experience injuries and damages from an accident you cause.
The effect this has on you is that it can provide protection for your finances. If you didn't have the insurance plan, you may have to pay for the damages. Therefore, having liability coverage should be a priority for anyone that drives.
Car Repair Insurance
Car repair insurance comes in two types, and you might want to add both to your plan.
The first type is “collision”, which could provide coverage for accidents you cause. The benefit is that your plan may cover your vehicle even if they label you the “at-fault” driver in the accident.
The other type is “comprehensive”, which is also a form of car repair insurance. This type may cover damages that result from things other than collisions. For example, it often covers damages from theft and animal collisions.
Extra Coverage Types
After reading these descriptions, you might realize that you need all of these coverages for your vehicle. You might wonder, though, is car repair insurance worth the cost?
As you continue reading, you'll learn the answer to this question.
Reasons You Need Auto Repair Insurance
So, what are the top reasons to consider buying auto repair insurance with your plan? Here are several that you might want to know about as you decide what types of insurance protection to choose:
You Owe Money to a Car Loan Lender
The first reason to buy auto repair insurance is to meet your lender's requirements. Of course, this reason only applies if you owe money to a car loan lender.
Your lender tells you what protection you must purchase if you have a loan. If you don't have a loan, you won't have to follow these requirements.
In fact, if you don't buy the right coverage, your lender could buy it for you, but you'll have to pay them for it. They call this force-placed insurance.
Your Car Is Valuable
You might not have a loan on your vehicle, but you might still need auto repair insurance. For example, is your car valuable? If so, you could lose the car and its value by causing an accident without auto repair insurance.
You Don't Have Money to Replace It
If you lost the car to an accident, would it devastate you financially? Would you have the funds to replace the vehicle if you didn't receive any compensation from your insurance policy? If not, you need this coverage.
You Never Know When An Accident Will Happen
Finally, it's important to consider one thing - you never know when an accident will happen. Accidents happen without notice or planning.
If you drive, you risk causing an accident or being a victim of an accident. If you want to cover your bases to potentially have all the protection you need, you'll want to add auto repair insurance to your policy.
Ways to Make Sure You Have the Right Coverages
You can do several things to ensure that you have the right coverage and choose the right company.
The first thing to do is speak with a car insurance agent. You can describe your situation and vehicle to the agent, and the agent can provide advice about the types of coverage you might want to choose.
Next, you might want to read car repair insurance reviews to learn more about an insurance company before choosing them. Reading reviews helps you learn more about a company's products and services.
Get a Quote for Coverage
While some drivers might not need auto repair insurance, others do. If you realize that you should have this coverage, you can add it to your plan.
At Central Carolina Insurance Agency, we offer auto repair coverage and many other types of car insurance plans. We also offer other types of insurance.
If you live in North Carolina and want to learn more about auto repair insurance, contact us. We can answer your questions and offer a quote.