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The Importance of Auto Insurance

Car owners are always faced with the dilemma of whether they should get auto insurance for their vehicles—after all, this is an added cost to the usual maintenance and fuel expenses that a car regularly has. Recent news regarding the increase of insurance costs doesn’t help either—in the US, premiums increased by an estimated $150 this year. Europe is not spared of this price hike; Ireland, in particular, will experience a 10% increase in premiums next year according to a report by Independent.ie. Car insurance coverage usually costs €350 per year, and analysts say the hike is due to a significant increase in claims these past few years.

Despite the price hike, experts still advise that auto insurance is essential. For starters, a car insurance policy will protect an owner from the exorbitant cost of unexpected mishaps. It’s a good investment of paying a relatively small amount at first then reaping the benefits later. An auto insurance policy is legally necessary in the US, UK, and Ireland, and young drivers noticeably have bigger premiums. This should not deter young owners from getting covered because there are ways on how to lower the premium costs, according to Aviva’s motoring help and advice. Vehicles with smaller engines have lower premiums, and securing the car with alarms and immobilizers may also drive the costs down.

Information site DMV.org enumerated the benefits of buying car insurance, and these are:. Liability insurance protects the owner from driving errors. Bodily injury protection ensures payment of medical costs in case of an accident. Property damage coverage takes care of repair expenses for damage to another person’s property. Collision insurance covers the cost of vehicle repair when the mishap is the policy owner’s fault. Some insurance companies offer medical payments coverage that covers costs for lab tests, surgery, physician consultations, and hospital expenses for injuries caused by an auto accident.