An insurance cover helps a person take care (financially) of a situation that requires a large amount when they get involved in an accident. It is clear that liability insurance is the most popular cover but this is also the case because it is mandatory. There are several instances that a person might find themselves in and they will start wishing and crying that they wish they knew any better to take the cover. A person should look at these instances and evaluate whether it is worth to be driving around without a liability cover, at least.
When a person is involved in an automobile crash, the first thing is to determine who is really at fault. If you are found to be at fault you will be required to take care of the medical expenses of the occupants of the other car. This definitely can be a lot of money for many people and also because no one is really prepared or plans to go causing accidents wherever they go. In case you aren’t insured with liability insurance, it means then that you have to foot the medical bills of the injured people. Definitely this would leave you distraught and poor.
There are other instances when an accident is witnessed and still you are the one at fault. The damage could be on the other car which is obvious otherwise there wouldn’t be an accident. The repair of that car is to be done by you. As it may, a garage bill totalling $5000 is mailed to your insurance company. If there is no cover then this is delivered to your door. While this might be affordable, what if the repair bill is $30,000?
Hitting a pedestrian, god forbid can happen to anyone. A driver without a mandatory liability insurance (or as the Danes say lovpligtig ansvarsforsikring)will definitely have to cover for the medical expenses that arise from their driving fault. A pedestrian or even a cyclist might want more than just the medical bill settlement. If incapacitated, then you will be liable to pay for the nursing care, the loss of livelihood and many other associated costs. Clearly life would be headed straight to hell if you were to pay some $200,000 to settle this dispute.
When one is not insured at least with a liability insurance, the disputes that arise form that accident are handled by a third party. There will be lawyers to represent each party. When you lose which you will of course if you were at fault, the legal fee of your lawyer together with that of the plaintiff’s lawyer should be footed by you. This means that other than paying for the truly high medical and damage compensation packages to the aggrieved parties you are also to incur other unnecessary expenses. There are instances where this is so serious that auctioneers move in to help come up with the money needed to settle these disputes.
A person may have been uninsured for some time and the law caught up with him or her sometime later. This will not be the end of the story as the insurance firm will be checking your record and seeing that you are a defaulter. The premiums will shoot upwards.