Is Auto Insurance Overrated? Debunking the Myths

If you are a relatively good driver, you may find that you have not been involved in a single automotive accident in several years. This can spur you to wonder why you pay for your car insurance, as it seems to be such a rare occurrence to be involved in a wreck.

However, this protection is much like a security blanket. It may not ever happen, but that protection will be more than welcome if it does. In a sense, yes, insurance seems overrated or overpriced. If you should ever become involved in an accident, you will see it from a different view and be very happy that you were covered.

Insurance When Leasing a Vehicle or Driving Lease-To-Own Vehicles

When you do not fully own a vehicle (leasing, for example), you can enter into a world of trouble and debt should the vehicle be totaled in a collision. Insurance helps to recoup damage costs, but what if the vehicle is rendered totaled after the accident? This is a major blow to any lessee. 

Gap insurance from autotrader.co.uk helps to protect those who are leasing vehicle. This type of insurance comes into effect when a vehicle is totaled and there is still an outstanding balance on it. It helps by paying the difference between the insurance compensation and what is left to pay on the vehicle.

If you do not have this added protection, you will be forced to pay for the rest of the vehicle out of pocket. For most, it would be an absolute nightmare to have to continue paying on a vehicle that you can no longer drive. By having the proper insurance coverage, you can avoid this financial pitfall.

Repairing Damages on Your Vehicle

The damage done during an accident gets expensive fast. Even a small bump near the headlight can cost you over one grand. This is because several body panels may need to be replaced, and a new coat of paint applied. By having insurance, you can avoid paying for these damages. If you are involved in an accident that only involves your vehicle, the damage is not able to be pawned off onto another driver. 

If you are involved in an accident with another vehicle, and it is that driver’s fault, then your damages will be paid for by them or their insurance provider. If you happen to total your vehicle in a one-car wreck and do not have insurance, your only option would be to sell your car in parts or to a junkyard; unless you intend to repair it.

Protecting Yourself from Claims

Insurance policies will include a limit for the damages that you might incur should you cause a wreck. This protects you from being prosecuted in a legal claim. Insurance does not exist only to protect yourself from damages incurred, but from damages that you cause as well. 

Without car insurance, any driver could find themselves in a very severe financial position. By finding a great provider and the right amount of coverage, you can drive with security.