There are various benefits of auto insurance especially when you are involved in an accident. In the event of an accident and you do not have auto insurance policy, you will have to pay for all expenses such as the costs of medicals, repairs, law suits and others out of your own pocket. On the other hand, if you have an auto insurance policy and you are involved in an accident, you will need not to worry about the costs mentioned above as the insurance company has underwritten to bear the cost subject to the payment of your premiums in advance.

As we all know, auto prices are increasingly getting more expensive as the days passes. And as a result, not having an auto insurance policy can lead to heavy monetary losses for you. Below are some benefits of buying an auto insurance policy.


Car accidents happen all the time, no matter where you drive.  If you cause an auto accident, you might be responsible for any costs associated with it. This includes legal fees, medical expenses, and lost income. Without certain types of coverage, you would likely pay for these costs out of your pocket. Also, if your vehicle is damaged, the insurance covers the cost to either replace or repair it. Below are the benefits of auto insurance.


Provides coverage against Legal Hassle

Auto insurance offers you protection against a lawsuit emanating from accident out of your negligence. This is even if you cause significant damage to someone’s property. The insurance safeguards you and helps you pay for the claims that others make against you in the event of accidents. In other words, it covers legal costs or liabilities. Moreover, it equally helps you avoid or pay for any fine arising from breach of traffic rules or regulations and as well as other legalities that you would ordinarily need to cater for.

Coverage against Third-Party Liability benefit of Auto Insurance

This is one of the most basic benefits of auto insurance coverage. In fact, the third party liability plan is compulsory in almost all countries of the world. Thus, it serves as the minimum mandatory auto insurance requirement for all vehicle owners. Premiums for these policies are usually low as a result of the low payouts or indemnity.

Thus the third party auto insurance plans only pay the financial liability to the third-parties in the event of accidents or other eventualities. And this ensures that the vehicle owner do not face legal difficulties due to the accident.

It is worthy of note that this policy do not offer any financial assistance to repair the policyholder’s vehicle after accidents but only that of the third parties involved in the accident.


Similarly, if you injure a person or damage someone’s property during a auto accident, the insurance policy helps you pay for the pecuniary losses.

Financial Assistance benefit of Auto Insurance

This is one of the benefits of auto insurance policy. The policy also gives you protection and coverage for the repairs or replacement of your damaged cars in the event of an accident and this goes a long way in protecting you and your family against monetary losses. This is because without insurance to cover the costs, it might be difficult to pay for repairs to your vehicle out of your personal pocket.


This benefit is particularly apt because after accidents, you need to expend considerable amount of monies on repairing your own vehicle. However, with the availability of auto insurance policy, there is a serious limitation as to what you can spend out of your pocket. Therefore, with the auto insurance policy, you’ll pay less if you’re involved in an accident, especially a large one.


Theft/loss Benefit of Auto Insurance

If your vehicle is stolen, your insurance policy will help you reclaim a portion of the car’s on-road price. You can expect similar assistance if your vehicle is damaged beyond repair due to accidents.

Protects vehicles from devaluation       

Auto Insurance also helps you avoid the devaluation of your vehicle. Some policies help to prolong the value and life of your vehicle. This is as a result of the fact that the insurance company will indemnify you for damages to your car or a replacement of your car in accordance with the current market value and not the value as at the time you acquired it.

Provides Peace of Mind

It also gives you peace of mind to know that your policy protects your family against monetary losses. Without insurance to cover the costs, it might be difficult to pay for repairs to your vehicle.

Provision of no claims bonus

Some insurance companies offer a no-claim bonus (NCB) in which eligible customers can qualify for every claim-free year. The NCB might be offered as a discount on the premium, making car insurance more affordable.


Provision of coverage for medical expenses

Auto insurance policy also provides you with indemnity for the medical expenses incurred as a result of accident. The level of indemnity or coverage will largely depend on the terms of your policy with your insurance company.


  1. I’ve been absent for some time, but now I remember why I used to love this site. Thank you, I will try and check back more frequently. How frequently you update your site?

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