by Shaheen Darr

Created on: October 20, 2008   Last Updated: January 13, 2011

When you take your car on the road you accept the fact that you are driving a vehicle that can cause damage to others or can be damaged by others. Therefore, as a responsible driver, you have to ensure that the vehicle you are driving on a public road is insured. Personal insurance is taken out as a safeguard to your family's well being after your death or to safeguard your own financial well being in case you were unable to work and support yourself.

In the scenario of being involved in a car accident that was not your fault, it is necessary that both you and the other driver should have up to date car insurances. Once the accident has been reported and investigated, the insurance company of the driver at fault will have to pay the damages or other compensation that arises from the claim. This means his monthly car insurance premiums will go up to reflect this incident. In the unfortunate case of being involved in an accident that was your fault while driving an uninsured car, legal proceedings can be issued against you.

Additional advantage of having car insurance is that the insurance company includes a courtesy car to minimize disruption of your daily routines while your own car undergoes repairs. If you are involved in an incident where your car is badly damaged, you and your family will be taken home safely and once the claim has been settled you are provided with adequate finance to buy a car that reflects the current market value of your own car.

In the event of car theft, you are only paid compensation if your car has adequate insurance. In addition to providing adequate information about the incident, parking your car in a safe place and keeping the car keys out of sight are some of the things that ensure insurance companies take your claim seriously. If you have not insured your vehicle and it gets stolen there is nothing you can do to cushion the financial loss.

In conclusion, it is vital to have your car insured before you decide to start driving it. As far as your own personal insurance is concerned you should be insured whether you are driving a car or not. The best answer to the above topic would therefore be that it is vital to have both insured, the car and its driver.

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