3. To make amends for an accident perpetrated by someone else.
On the other hand, if you are hit by someone else, you will be grateful that the government compelled them to carry insurance. Because if an uninsured driver hits you, you may have to wait a long time to receive the compensation you are entitled to.
Meanwhile, you’re paying for repairs, medical bills, and other expenses, all while your credit score and sanity are at stake. That is why it is referred to as liability coverage.
The other motorist is *liable* for the damage to your vehicle (property liability coverage) and your medical expenditures (bodily injury liability coverage).
That’s also why governments don’t require collision or comprehensive insurance; to put it bluntly, they don’t give a damn if you damage your property. They want to ensure that you can pay someone else’s bills (including theirs). Nonetheless, you should consider getting collision and comprehensive coverage for reason #4!
4. To have your car repaired – regardless of who caused the collision.
Every driver needs liability insurance, but only a few require collision and comprehensive coverage.
• Collision insurance helps to pay the cost of repairing/replacing your automobile if you cause an accident or if the other driver’s insurance does not cover the cost of your repairs (or does not exist at all).
• Comprehensive insurance protects your vehicle against damage caused by an “event,” such as vandalism, theft, floods, falling trees, renegade deer, alien invasion, and so on.
Do you ** need collision and comprehensive insurance?
It all comes down to how you answer a simple question: if your car were significantly damaged tomorrow, would you be able to pay for repairs – or perhaps a replacement?
If not, purchasing collision and comprehensive insurance can provide peace of mind while avoiding a significant financial strain. This is especially true if your car is essential to your health or income.
If your automobile isn’t worth that much and you have a few thousand dollars set aside for probable repairs (or even a replacement), you can skip collision and comprehensive coverage.
Finally, suppose you couldn’t afford to repair or replace your automobile out of pocket but could live without it for a while. In that case, you might be okay without collision and comprehensive coverage.
After all, they aren’t cheap, and the pair may quickly add $500+ to a six-month subscription. For your rental car, collision coverage is also a brilliant idea. Fortunately, your rewards card may include it for free. Look for “Auto Collision Damage Liability Waiver” under your cardholder perks.