The Used Car Insurance For The Second-hand CarsOctober 22, 2021
Insurance companies – the people that may give you a headache, but can actually save your life. Although you shouldn’t believe everything they tell you – especially when it comes to used car insurance quotes.
What does car insurance do?
Your car’s registration and legally required insurances cover third party injuries and damage caused by your vehicle. Your own injuries are covered by health insurance, but if you damage someone else’s property, this is where auto liability coverage comes in.
If another person owns the property that you damaged or injured with your vehicle, then their insurance policy covers damages or personal injury costs alot. When this limit is reached, other insurance policies will cover your costs.
Why can’t you just pay for repairs yourself?
If your insurance doesn’t cover the damage, and you can’t pay for them out-of-pocket, then the person whose property has been damaged will sue you. If the court rules in their favor, both your wages and savings could be drained to repay damages or injuries caused. The stress of a lawsuit might also impact on your work and personal relationships.
What could happen if I don’t insure my car?
Insurance companies may cancel any policy that they believe is underinsured (the sum insured isn’t enough to cover expected losses), or increase premiums until it’s properly insured. You may also lose your driver’s license and need to appear in court.
What could happen if I’m found uninsured?
If you’re involved in an accident and cannot prove that you have car insurance, then your vehicle may be impounded for 30 days or until proof of cover is provided. You will also receive a hefty fine depending on the situation. In addition, the court has the right to issue a term of imprisonment between three months and two years, further increasing stress levels.
These scenarios are all avoidable by ensuring you have comprehensive car insurance at all times – not just when it’s required!