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Uncovered is Risky: 5 Facts About Why Auto Insurance is Essential for Your Financial Safety

18 July 2018 No Comment

If you get to the end of the month and think about stretching your paycheck by skipping auto insurance, you’re taking a big risk. Have a quick read of some of the risks below, and you’ll see just how important it is.

  1. It offers you protection in the event of an accident or a collision with another driver

Head over to sites like Aqeed.com, and you’ll see all manner of coverage options that you may think you can do without. The critical thing to remember here is that you’re protecting yourself against unforeseen problems. Whether you collide with an obstacle or are involved in an accident with another driver, the financial repercussions can be sizeable. Car insurance is also required in many places, involving hefty fines for those who don’t carry it.

  1. Minimum amount to Payout Via your policy excess

Your insurance will limit the amount which you need to pay out of your own pocket in either of the above instances. That way if the worst happens you won’t be overly exposed.

  1. Car insurance will also ensure that you receive compensation from the party at fault

If you get into an accident that isn’t your fault, then car insurance really comes to the rescue. By making a claim against the other motorist, you can ensure that any medical expenses are covered. They are also obliged to cover the cost of the repairs to your car so that you can get back on the road without facing a large bill. This is a fair approach that ensures if we all pay into our insurance packages then no one will be left out of pocket through no fault of their own. Consider how you would feel if a driver was unable to provide insurance details before you decide to skip this month’s payment.

  1. With 6 million accidents a year you don’t want to be living off credit

The sheer volume of accidents is perhaps one of the biggest reasons why a lack of insurance can impact your finances. With fines in place for not complying with the law you can easily find yourself in the position of having to pay out compensation, and a fine for a minor bump or scrape. For many of this would mean turning to credit cards or a personal loan to cover things which would then cost far more than a monthly insurance package.

  1. The unpredictable can and does happen!

In an ideal world, you would avoid all other drivers and obstacles, but roads and highways are unpredictable places. Cutting a corner may feel like it is a quick fix, but with even the most minor incident running into thousands of dollars there are no prizes for cutting corners.

So, we’ve taken a look at how insurance can safeguard your financial safety in 5 key ways. It will cover the cost of repairs, pay for medical expenses, cover you against a collision with an obstacle or another driver, and prevent you getting into debt. If all these things sound useful to you, then you know what to do! Select a package that is right for you, and make sure you set it to renew automatically.That way, you will never find yourself in caught short in a situation without coverage.

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