If this is your first time purchasing a car, you might be wondering if you really need to buy auto insurance. After all, owning a car is already expensive enough. You need to pay for your driver’s license, to make your car payments regularly, and to buy gas if you want to go somewhere with your brand new vehicle.
The truth is that you don’t really have a choice, since basic auto insurance is mandatory in Canada. If you want to drive a car, you need to at least have liability insurance, and the minimum amount of coverage you should get depends on the province where you live.
How will buying auto insurance help you in the long term? Let’s find out the six long-term benefits of buying auto insurance:
1. Buying auto insurance is cheaper than paying high bills
Collision coverage protects your car if you get involved in an accident. You could easily argue that if you never have any accident, you will never need to file a claim, and paying for auto insurance will be useless. And you don’t want to be paying for something useless, right?
But there is no way you can predict the future. Even if you drive carefully, you could still get involved in an accident. Or your car could get stolen, or damaged in a fire.
Paying for small auto insurance premiums is much better, in the long term, than having to pay high car repair bills or medical bills.
2. Auto insurance will allow you to receive a compensation in the event of a disaster
Let’s suppose that your car got destroyed in a fire, that it got stolen, or that it got caught up in a tornado. Or it could have gotten damaged by vandals, or during a collision with a deer or a moose.
You don’t know what type of disaster can strike your car. But if you don’t have auto insurance when disaster strikes, or if you don’t have enough coverage, you know your car could be a total loss.
With the right amount of comprehensive coverage, you could be compensated for whatever happens to your car. You could even receive enough money to buy a brand new one!
3. The right insurance coverage will help you avoid liability lawsuits
Liability auto insurance is mandatory because it covers any damage you could cause to another person, and to another person’s vehicle and property.
Now, of course, you wouldn’t want to hurt anyone while driving your car, and you don’t want to damage any car either. But if ever you do, you could get involved in a messy liability lawsuit.
Unless you have liability insurance. This type of coverage will help you avoid lawsuits, since your insurance company will be compensating anyone who gets injured or sees their car get damaged in an accident you are responsible for.
4. Buying auto insurance makes you a more confident driver.
You probably have more than enough to worry about in your daily life. When you get behind the wheel, you also need to be careful and to pay attention to other drivers, to pedestrians and cyclists, and to traffic rules.
Buying auto insurance can help you save money in the long term, yes, but it can also help preserve your peace of mind.
Owning an auto insurance policy doesn’t give you the right to drive recklessly, of course, but it assures you that if ever you do get involved in an accident despite being careful, any injury or damage you sustain or cause will be paid for.
5. Knowing that other drivers have auto insurance will help you keep your peace of mind
Driving while you are well insured will no doubt help reduce your stress. But since liability insurance is mandatory, you know that other drivers sharing the road with you are supposed to at least have basic insurance coverage, which means that if they bump into you, their insurance will pay to get your vehicle repaired.
Knowing that other drivers are insured will help you keep your peace of mind. And knowing that you are insured will preserve the peace of mind of other drivers.
When you think about it, purchasing auto insurance only makes sense, doesn’t it?
6. Buying car insurance makes buying a new car less risky
Paying for collision, comprehensive, and liability auto insurance coverage can help you save a lot of money when buying a new car. It can help you stay calm and confident while you are behind the wheel, even in the event of an unfortunate car accident.
If you want to make sure you have the right amount of coverage for your new car, don’t hesitate to research different car insurance quotes before you buy, or to ask questions to an insurance broker.
It’s better to be safe than to be sorry, and getting informed before you purchase your insurance policy will help you make the most of your money.