Car Insurance - The Necessity Of Car Insurance
Car insurance has become extremely important these days because of the increasing necessity of auto transport in our age. Today, everyone needs a fast means of transport to reach their workplaces and their homes. It is very difficult for everyone to purchase an automobile in one go, therefore, the need for loans arises.
An individual takes a loan from a bank and the bank gives him a new automobile within a very small time period while the loan is paid back in installments. This reduces the wait period that an individual would have had to go through should he have had embarked on waiting until he had accumulated all the amount needed for purchasing the automobile and had then purchased it.
Now, after the bank has issued the car, they need to ensure that it will be safe should the individual falter on his payments, make an accident with the car or pass away unexpectedly. In such a case, the insurance company is liable to pay back the bank the balance. It is because of this that banks have made it mandatory for car leasers to purchase insurance on their cars. Many car leasers might be unwilling to pay the extra expense since they are already cash strapped and look towards banks for respite, which put an extra burden on them apart from the interest they demand on installments. Naturally enough, the business of car insurance therefore becomes directly proportional to the car lease business and is therefore, also booming.
Not only that, many people who purchase cars, other than those who purchase it via banks, purchase car insurance because they think that this will protect their cars should the vehicles meet accident.
However, those people who are purchasing car insurance individually rather than through banks should be extra vigilant in their choice and decision of the car insurer and purchase car insurance only from a trusted source. This is because there are many scams involved in the industry and people lose their lifelong savings with a single wrong decision which was not researched through appropriately and thoroughly before it was put into action.
An individual takes a loan from a bank and the bank gives him a new automobile within a very small time period while the loan is paid back in installments. This reduces the wait period that an individual would have had to go through should he have had embarked on waiting until he had accumulated all the amount needed for purchasing the automobile and had then purchased it.
Now, after the bank has issued the car, they need to ensure that it will be safe should the individual falter on his payments, make an accident with the car or pass away unexpectedly. In such a case, the insurance company is liable to pay back the bank the balance. It is because of this that banks have made it mandatory for car leasers to purchase insurance on their cars. Many car leasers might be unwilling to pay the extra expense since they are already cash strapped and look towards banks for respite, which put an extra burden on them apart from the interest they demand on installments. Naturally enough, the business of car insurance therefore becomes directly proportional to the car lease business and is therefore, also booming.
Not only that, many people who purchase cars, other than those who purchase it via banks, purchase car insurance because they think that this will protect their cars should the vehicles meet accident.
However, those people who are purchasing car insurance individually rather than through banks should be extra vigilant in their choice and decision of the car insurer and purchase car insurance only from a trusted source. This is because there are many scams involved in the industry and people lose their lifelong savings with a single wrong decision which was not researched through appropriately and thoroughly before it was put into action.
Source...