You might be asking yourself if you really need auto insurance. Auto insurance premiums can be a significant cost. However, the personal and financial risks of not having proper auto insurance coverage far outweigh the cost of your car insurance premium.
In this article, we are going to give you all the reasons why you need to get auto insurance.
What is Auto Insurance?
Auto insurance is a contract that you sign with an insurance company. The goal of this agreement is to protect you against monetary loss in case of an accident. Apart from basic car insurance, you can also get:
- Medical: Covers the cost of your medical bills in case of an accident.
- Property: Protects you against damage done to your vehicle or theft.
- Liability: Protects you in case you cause damage to other people’s property.
Why You Need Auto Insurance
When you drive your vehicle there is always the chance that you may be involved in an accident. Having car insurance will not only give you peace of mind, it can save you a lot of time and money if you get involved in an accident. In more detail, auto insurance is essential for all of the following reasons.
#1 It Is Required by the Law
The first and most important reason why you need auto insurance is that it is required by law. Depending on what state you live in penalties for driving without car insurance range from fines, suspension of your license, to having your vehicle impounded. Every state in the United States of America requires that you have basic auto insurance coverage. However, in some states, the law might even dictate that you have additional coverage. For this reason, before getting auto insurance, you should check to see if your premium meets your state’s minimum coverage requirements.
#2 It Protects You and the Passengers of Your Car
Being on the road means that you always run the risk of getting caught up in an accident. Apart from serious accidents, your car might break down in the middle of the road, you might get hit by another vehicle, and worse you might get into an accident with someone that doesn’t have car insurance. Depending on your insurance plan and deductible amounts some or potentially all of your expenses will be covered.
All auto insurance premiums offer medical coverage as an option. Medical treatment in the United States is very costly and having adequate insurance coverage will help reduce your medical costs in the event you are involved in an accident. You can even add coverage for passengers that ride in your vehicle.
#3 Repair Costs are Cut Down
If you cause an accident and do not have car insurance you will have to pay for all of the repair costs for not only the damage done to your vehicle but for the other party’s car as well. Car repairs can be costly, particularly if you get into an accident with an expensive vehicle. If, however, you have car insurance, these costs will be greatly reduced or potentially fully covered depending on the coverage you selected.
#4 Protect Yourself from Uninsured Motorists
Despite the necessity of having auto insurance some people choose to drive without car insurance. This puts you at risk. If you choose to add Uninsured Motorist Coverage to your premium you will be protected in the event you are involved in an accident that is caused by a driver that is uninsured or underinsured. Without this coverage you may have to pay out of your own pocket for medical bills and repairs to your car.
Auto insurance is essential for every driver, no matter how frequently or infrequently you use your car. If you purchase an affordable car insurance premium, you will have peace of mind.