When you buy auto insurance, you can combine several types of insurance, such as personal liability insurance and strict liability insurance, to create your own plan that suits your needs. If you want to be prepared for car problems, many drivers use car insurance as a convenient and safe insurance.
This article details the need for car insurance, providing an overview, strengths and weaknesses of car insurance. If you’re considering auto insurance, check it out.
Basic of vehicle insurance
Auto insurance is an insurance product for vehicle problems. Insurance will be paid if you hit your car or if you are the victim of a car theft. You can choose from multiple types of auto insurance, from the general type (full coverage type, general conditions, etc.) with broad coverage to the limited type (economy type, distance between vehicles + A, etc.). It is common to reduce to the minimum range.
General car insurance covers a wide range of areas, including leaks and individual accidents. The appeal of general car insurance is that it fully covers repair costs in the event of problems like not being able to get into the garage or breaking lights or bumpers. On the other hand, limited-type auto insurance has limited coverage and lower insurance premiums than general-type insurance. Be aware that uncompensated accidents such as escape accidents and one-person accidents can occur.
Auto insurance generally depends on the condition of the vehicle, such as the date and model of the initial vehicle registration, annual mileage, age, gold license status, and the status of the insured of record. In addition, the insurance premium varies according to the amount of insurance that is established, and the higher the established amount, the higher the insurance premium.
Should I buy auto insurance?
Auto insurance is voluntary, so you don’t have to purchase liability insurance like you do. One of the reasons I wonder if I should join is the burden of insurance premiums. Basically, you need to consider the balance between coverage and insurance premiums. Here are some tips for deciding whether to buy car insurance.
The (total) penetration rate of auto insurance is about 45%. The penetration rate is around 53%, mainly for ordinary passenger cars, compact cars and light four-wheel passenger cars. The total includes motorcycles with a penetration rate of around 1%, so if you focus on private cars, the penetration rate will be high.
By prefecture, Aichi prefecture 58.5%, Gifu prefecture 57.7%, Osaka prefecture 50.2%, Mie prefecture 50.0% are more than half and the prefecture of Okinawa is the lowest at 27.8%. The decision to buy auto insurance also depends on the traffic conditions in your area.
Next, regarding the status of insurance payments by accident type, the most common was car-to-car at about 42%, car alone at about 30%, and car targets at about 26%. Keep in mind that limited vehicle insurance does not cover a single accident. Based on payment status by prefecture and type of accident, the national average of payments due to typhoons, tornadoes, floods and storm surge is about 4%, but by prefecture, Osaka prefecture is about 25% and Osaka prefecture Wakayama is about 22%. Kyoto. You can see that the proportion is high, around 11% in Okinawa prefectures and prefectures.
Advantages & Disadvantages of car insurance?
The advantage of car insurance is that it covers a wide range. There is a difference in compensation between the general type and the limited type, but if you need a car and the damage to the car has a great impact on your life, the benefit of participation will be greater.
On the other hand, the downside of car insurance is that the premium is high. Also, keep in mind that in the event of an accident, your rating will go down and your premium will go up.
If you are concerned about the burden of insurance premiums, you can lower your insurance premiums by reducing the insurance amount or setting a deduction amount. If you take out insurance, the rating will go up, so if it is within a certain range, you need to repair it yourself, and if the damage, such as total loss, is large, you need to take out car insurance.
Auto insurance has its strengths and weaknesses. If you are wondering if you need to subscribe, consider the criteria presented here to consider your need. Coverage and premiums vary by insurance company, so think slowly against each company’s brochure or wholesale quote.
Need for car insurance by risk
In the previous chapter, we presented four typical car accident risks and stated that liability insurance alone is not sufficient to prepare them comprehensively.
Let’s review the four typical risks of a traffic accident.
Typical risks of car accidents
- Risk of injury or death
- Risk of destroying your own
You must purchase voluntary car insurance to prepare for the risk of a car accident that cannot be covered by mandatory liability insurance alone.
So how does car insurance handle the risk of every car accident?
Let’s take a concrete look at each risk.
Risk of injury / death
So far, we have looked at the risks of harming others, but this is not the only risk associated with a car accident.
The risk of injury or death from a car accident is also one of the risks of a car accident.
If you are injured in a car accident, you will have to pay for medical treatment.
If the disability persists and requires long-term care, this cost can also damage the home.
In the worst case, if something else happens, can the rest of the family live?
Such injuries and deaths are expected to incur various costs, but unfortunately these costs can not be covered by car liability insurance.
Liability insurance seems to repeat itself, as it only covers the risk of injuring or killing others.
Therefore, car insurance includes personal injury insurance and passenger accident insurance in the event of injury or death.
Simply put, both are insurance that includes medical coverage in the event of a car accident and compensation for death in the unlikely event of an accident.
There is some overlap with regular life insurance, but the range of people covered by the insurance is different.
Personal injury compensation insurance covers car accidents while the driver or passenger walks or bicycles and unmarried children who are separated from their families.
Also, passenger accident insurance generally covers both passengers and drivers.
On the other hand, ordinary life insurance covers only the insured.
In that sense, personal injury and accident insurance are covered by accident and death insurance that specializes in automobile accidents.
It can be said that there is a great need for personal injury compensation insurance and passenger accident insurance in preparation for the risk of personal injury and death that cannot be covered by liability insurance.
Finally, another possible car accident risk is when your property is destroyed.
For example, in the case of a car accident, the car is not intact in most cases.
On top of that, the car can be mischievous or the car can hit a lamp post.
In such cases, you will be charged for the car repair, which is also not covered by car liability insurance.
Therefore, car insurance includes car insurance that covers the cost of repairing a car if it breaks down.
If your car is badly damaged and cannot be repaired, you can use your insurance money as a replacement.
Also, depending on the situation, you can get insurance even if your car is damaged by a typhoon or flood.
However, the insurance premium for auto insurance varies greatly depending on the type and model year of the vehicle you have a contract with, so depending on the vehicle, there may be few benefits to purchasing auto insurance.
In addition, depending on the negligence rate (degree of liability in the event of a car accident), if the car breaks down due to a car accident, the other party’s liability insurance will be taken out. At the time, it was covering repair costs.
Liability insurance does not cover the risk of destroying your own property, so car insurance is certainly one of the effective ways to cover that part.
However, depending on the situation, the benefits of purchasing car insurance may not be significant, so it seems that you should carefully consider whether it is necessary.