Why do we need to buy insurance?
Insurance helps you: Own a home, because mortgage lenders need to know your home is protected. Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage.
Why is it so important to have car insurance?
Why is car insurance necessary? Having car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians. All motorists must be insured against their liability to other people, as stipulated in the Road Traffic Act 1988.
What is the purpose and need of insurance?
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.