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7 Reasons Why You Really Need Insurance Coverage

In the land down under, the land of the Crocodile Hunter, insurance is sacrosanct. There are many reasons why automobile insurance coverage is important in Australia, much like it is everywhere else. Before we get started, there are different types of auto insurance packages available. It’s difficult to prescribe a blanket solution for all motorists at all times.

Put simply, the best automobile insurance is the solution that offers the best coverage for your specific situation at the time that a claim must be processed. For example, flooding, fire, theft, damage and so forth will determine what type of coverage is required for your vehicle. Of course, it is difficult to know what type of problems you will encounter, making your insurance decision that much more important.

At a bare minimum, everyone is required to have the government-mandated insurance coverage for their state. This is typically the minimum coverage available to you for property damage and liability coverage. From a legal perspective, it is imperative to have insurance for any vehicle that is operated on the road. The implications of not having insurance could be severe, including the revocation of your driver’s license, and punitive measures. Insurance is geared towards protecting other drivers from damage caused by you.

Liability covers the insurance policy holder (i.e. yourself) while property damage covers other people’s property. For example, you may have a 20/40 insurance policy which gives you $20,000 in liability coverage and $40,000 for property damage to other people. In the absence of insurance coverage, people can be sued in their individual capacity for damages caused. A deductible is typically levied on insurance coverage for things like vandalism, kangaroos, coyotes, theft, fire and so forth. Before you pick insurance in Australia, it is imperative that you use insurance aggregator services to get an insurance quotation. Many insurers punt themselves as best-price, best coverage providers – but that’s not necessarily true.

Collision coverage will cover damage to your vehicle when another vehicle is involved. It also includes things like mailboxes, trees, falling objects, and so forth. As always, a deductible is applicable with collision coverage. Without further ado, let’s get to the 7 reasons why insurance coverage is so important:

1. Accidents Happen – you can be the safest driver on the road, but that’s only 50% of the problem. The other 50% is everyone else on the road. You cannot account for other people’s recklessness, or guard against it at all times.

2. Financial Protection – when you are on the road, you are at risk. Multiple converging factors, elements and variables are in play at all times. You cannot possibly protect yourself 100% of the time against 100% of things that may go wrong. That’s why insurance offers you financial protection.

3. Save in the Long Run – every time you take your car on the road, you risk an accident. A car insurance policy protects you from liability lawsuits which can cost you a fortune.

4. Legal Wrangles – insurance companies have teams of lawyers on their side. When you get into an accident, or you need coverage, let the experts deal with the legal complications. They will provide you with quick advice on where to get your car repaired, how to deal with a crisis, and they have 24/7 support available for you.

5. A Great Health Insurance Supplement – many folks don’t know it, but a lot of medical complications or emergencies are a result of car accidents. Your auto insurance plan can supplement your existing medical insurance.

6. Variety – there isn’t just one type of insurance available there are several. You can pick comprehensive insurance (the best insurance) which includes coverage against damage to your vehicle as well as damage resulting from other people. There are also third-party insurance options for liability and damage, and third-party fire and theft if the vehicle is stolen or damaged by arson or fire.

7. No Claim Bonuses – these are available if you don’t make insurance claims against your company. You may get a discount once you’re ready to renew your policy.