Automobile insurance has three important tasks. They include protecting the investment you and any other vehicle you may damage in an accident.
In addition, insurance, providing some degree of monetary protection for those who may seek damages for injuries sustained in some mishap and offers assistance if your car is damaged when it is parked on a street, parking lot or other public place.
Most states mandate mandatory insurance if you own a car, and some states insist that you carry insurance for uninsured motorists.
Premiums are based on the value of the car you drive, your driving record, your age and possibly some other factors that will vary among insurance companies.
No one likes to pay the premiums. Most people will let their insurance lapse. Thus, if they are at fault in an accident, the owner of the damaged car has to depend on the uninsured motorists’ coverage he carries. If that coverage is not adequate, the matter will likely end up in court.
Auto insurance is very much like health insurance in that you hope it will never be needed. That is usually not the case. An outstanding driver can sometimes be drawn into a situation where he is found at fault as a result of poor driving by a third party that caused a person to cross the center line, run through a red light or commit some other violation resulting in an accident.
This happened because the driver was trying to avoid an accident that was about to happen.
Automobile insurance has limitations. As any car ages, it depreciates in value. Thus, the $20,000 car purchased four years ago and kept in pristine condition will be worth less in the eyes of the insurance adjustor if it is “totaled” or damaged beyond repairs in an accident.
Most automobile insurance policies offer medical benefits if the owner or passengers of a car are injured in a two-car accident or because of a flat tire, the vehicle went off the road and hit a tree. Find our more information about policies and cover in new zealand here.
These benefits will cover minor injuries and a trip to the emergency room. If extensive medical treatment is needed, then a person’s medical insurance will take over covering the expenses. If you were not at fault, your insurance company may sue the driver who they believed caused the accident, in an effort to recover some or all the expenditures.
Finally, regardless of the insurance policy, many automotive accidents will end up in civil court where one side tries to collect additional compensation from the other party because the accident caused injuries that will require life-long treatment, or affect the person’s ability to earn a living.
Therefore, despite having the best insurance, the driver must do his part to protect his and people in the other vehicles.
Thus all drivers need to obey all laws, carry the required insurance and drive defensibly, which means the assumption is made that someone else will mistake. In that brief moment, it becomes the responsibility of the other driver to react in a manner that will avoid injury to you and others, and keep the vehicles out of the repair shops.