8 MARCH 2024    •   Auto

Why Is Car Insurance Important? Here Are 7 Reasons

Car insurance is very important, even for new car owners, because it  covers payments due to car damage, as well as liability to others.


To choose the right type of vehicle insurance, it is important to understand the different benefits between car insurance policies, so you can get optimal protection. In this article, we explain what car insurance is, how it works, and its benefits.


What Exactly is Car Insurance?

In short, car insurance (or auto insurance) is a motor vehicle protection contract that provides benefits in the form of compensation for loss or damage to the vehicle. There are various types of car insurance coverages, and each type of insurance offers different levels of protection.

Choosing the right type of insurance policy is very important, depending on the driver's needs and condition of the vehicle. Things to keep in mind are if the vehicle is shared among family members, if you are a new driver, or if it's a brand new car and more. From there, you can decide the appropriate coverage you need. Some inclusions to consider are:

  • Roadside assistance in case of vehicle breakdown/accident

  • Liability coverage and/or collision coverage

  • Personal Accident

Today, there are also several online options available to make it easier for vehicle owners to choose the best insurance policy at an affordable price.

Benefits of Car Insurance

Car insurance not only protects against vehicle damage, but also provides financial protection in the future in the event of a road accident.

1. Protection against car damage

One of the main reasons why it is important for you to have vehicle insurance is to provide protection against car damage. Cars can be damaged due to various factors such as accidents, floods or fires which can result in expensive repair costs. With car insurance, you can submit claims for the repair of the insured vehicle from the insurance company.

2. Financial security investment

Auto insurance coverage not only provides protection; it is also an investment in financial security. Through vehicle insurance, car owners can protect themselves from unexpected liability. By transferring third-party liability, you can have peace of mind without worrying about the additional expenses that may arise due to car damage or accidents involving other drivers or other property.

3. Protects against financial loss

If a car suffers significant damage due to an accident, repair costs can be very high and prove financially burdensome for the owner. In situations like this, comprehensive auto insurance can be a solution that helps ease the financial burden by helping reduce added expenses.

An auto insurance policy will provide payment for the repair costs in accordance with the provisions and amounts stipulated in the insurance policy.

4. Protection against accidents and natural disasters

Auto insurance helps protect car owners from the risk of accidents and natural disasters. If the car has an accident or is affected by a natural disaster such as a flood or fire, the owner does not need to worry about repair costs.

5. Faster car repairs

With insurance, the vehicle repair process can be done much more quickly. Insurance providers have a network of workshops that they partner with. This makes the claims and repair process run more smoothly and efficiently. In some cases, the insurance company may even provide a replacement car during the repair process.

6. More coverage with additional protection

Based on your needs and budget, car insurance can also provide additional protection such as against strike, riots, civil commotion, or damages during inter-island transit. You can opt for a more comprehensive coverage that suits your needs.

7. More guaranteed car repairs

Through car insurance, you can rest assured that repairs are carried out by a trusted and qualified repair shop. With a ready network of trusted workshops, you can get more guaranteed repair services. You can feel more secure and confident that your vehicle will be repaired to a high standard, and remain in good working condition for the long term.

8. It's an Investment in Financial Security

Payment of auto insurance premiums not only provides protection, but is also an investment in financial security. Through insurance products, car owners can protect themselves from unexpected financial risks and receive compensation easily.

9. Protection from unexpected financial losses

Having car insurance provides financial protection in case of unexpected losses. Vehicle damage can cause a heavy financial burden for vehicle owners.

Financial planning can be difficult, but with car insurance you can protect yourself from unexpected accidents. You can avoid losses due to accidents and save money.

10. Financial security for the future

Car insurance premium payments are an investment in financial security for the future. In unexpected situations such as a serious accident where the vehicle is completely wrecked, you can face the challenges without having to worry about unexpected financial burdens. Having vehicle insurance can help with future financial planning.

11. For Life's Unexpected Twists

By transferring liability coverage and financial risks to insurance companies, you can focus on other things in life without having to worry about possible financial loss. You can have more peace of mind, knowing that your car insurance protects your financial security and stability, as well as avoid situations that could disrupt your  daily activities and life.

And if you're looking for a good car insurance company with comprehensive coverage, why not get a free quote from Oona? Oona stands out as an insurance provider by offering the most comprehensive coverage, and should be your go-to choice for:

  • Extensive coverage options

  • Flexible plans

  • Exceptional customer service

  • Competitive pricing

Having a car insurance policy is not just a must-have for car owners, but also a legal requirement. It is important because it provides protection against car damage. By choosing the right car insurance, you ensure the safety of not just your vehicle, but your investment as well. 

Frequently Asked Questions

Q1: Is car insurance mandatory?

A1: Yes, car insurance is mandatory. The minimum requirement is Compulsory Third Party Liability motor insurance.

Q2: How much car insurance coverage do I need?

A2: The amount of coverage you need depends on various factors, such as your personal requirements and your vehicle's value. It is advisable to purchase coverage limits that adequately protect your finances in case of an accident.

Q3: Can I customize my car insurance policy?

A3: Yes! You can customize your car insurance policy by selecting the types of coverage you need and choosing appropriate coverage limits.


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