If you’ve ever wondered if car insurance is a scam, then you’re in the right place. We’re here to tell you that it’s not. Insurance companies are not in business to scam you out of your hard-earned money they’re in business to cover their own asses when people get into accidents that they’re not responsible for.
The fact is, without insurance companies, people would have no way to recover from the damages they incur while driving.
The truth is that most people don’t know what to expect when they get into an accident and even if they do, they don’t know how much it will cost them or how long it will take them to pay off those costs.
All they know is that they need help ASAP. That’s why getting car insurance is such a good idea it gives you peace of mind knowing that no matter what happens on the road, there’s someone there watching out for you and taking care of all those little things so that your life can go back to normal as soon as possible and maybe even better than before.
What types of insurance are there?
Liability
This type of insurance covers bodily injury and property damage you may cause to others in an accident. Liability coverage also includes medical payments for injuries sustained by you or your passengers, no-fault benefits for medical expenses and lost wages, and emergency assistance services such as towing, flat tire repair, etc.
Collision
This type of coverage helps pay for repairs if your car is damaged in an accident with another vehicle or object. Collision insurance does not cover damage caused by hitting something that isn’t moving like a mailbox or a fence post.
You can purchase this type of coverage separately from comprehensive coverage; however, if you don’t have comprehensive coverage then you will be responsible for the cost of repairing any damage done to your car by hitting something that isn’t moving.
Comprehensive
This type of coverage helps pay for repairs if your car is damaged due to theft or vandalism. Comprehensive insurance covers incidents such as fire damage or hail damage on top of theft or vandalism incidents.
Pros and cons of car insurance
Pros
You will be covered for damages to your car or the property of others. This can help you avoid financial ruin if you accidentally hit someone else with your car and are held liable by a court of law.
If you have an accident and get into a car accident, you could be liable for injuries to others if they’re hurt in that accident. Car insurance will help cover their medical bills if they do end up needing medical care after being injured while riding in your car.
If you have an accident and get into a car accident, you could be liable for injuries to others if they’re hurt in that accident. Car insurance will help cover their medical bills if they do end up needing medical care after being injured while riding in your car.
Cons
There are a lot of cons to car insurance. It’s expensive, it’s hard to understand and it can seem like a scam. But if you take the time to really understand what car insurance is and why you need it, you’ll see that it’s actually a pretty good deal.
Let’s talk about the price. Car insurance can be incredibly expensive and that’s because it’s supposed to be. That might sound like a strange thing for a company to say, but there’s a reason why insurance companies charge so much they’re covering their risk by charging more than their costs in order to make sure they’re not losing money on each policy sold.
If one person gets into an accident and needs $10,000 worth of repairs, but another person gets into an accident and only needs $5,000 worth of repairs. They’ll charge less for the person who only needs $5,000 worth of repairs because they know they can cover their costs by charging less than they paid out in claims. And that means they’ve made money on that policy.
Why do we need car insurance?
If you’re driving a beater, and your only concern is getting from point A to point B without breaking down on the side of the road, then maybe there isn’t really any reason for you to have it. But if you have any kind of investment in your vehicle whether it’s monetary or sentimental then you definitely need some kind of protection in case something happens to your car.
It’s important to think about the real risk of damage when thinking about whether or not you need car insurance if someone steals your beater, then yeah that sucks. You’ll probably want some kind of coverage so that when they get caught in their attempt at grand theft auto.
What does car insurance cover?
Car insurance is designed to cover the costs of repairing or replacing your car if it’s damaged or stolen. It also covers the medical bills of anyone who suffers injuries in an accident caused by you or any other driver.
In addition to these basic policies, some companies offer special coverage for more expensive cars and more comprehensive plans for people with bad driving records.
Who provides car insurance?
Car insurance is a scam if you don’t understand what you’re buying, or if the company selling it to you doesn’t have your best interests in mind. But when car insurance is provided by a company that’s transparent about its business practices and focused on protecting its customers, it can be a lifesaver.
How much does car insurance cost?
The cost of car insurance will depend on a number of factors: your driving record, the type of car you drive and its safety rating, where you live, how many miles you drive each year, and even whether or not there are any accidents or tickets on your record already.
Conclusion
Car insurance is NOT a scam. It’s a necessary evil that will protect you if you get into an accident especially if you have a newer car or are driving in a bad neighborhood. If you can’t afford it, there are options out there that might make it easier for you to pay your premiums each month.
