Why Auto Insurance is a Must

When purchasing auto insurance people often feel emotions that range from mild irritation to outright annoyance. Many view insurance as nothing more than a state mandate that drivers must meet to drive legally. They erroneously believe that the only time a lack of insurance can be a problem is if they are involved in a car accident. The truth is that insurance is an investment that can protect your future and that of your family.

Legal Reasons to Have Insurance

Not having insurance when it is legally required can impact your life in several ways. You can be caught not having insurance if you are pulled over by the police for speeding or other traffic violation. At that time, you will be asked to present proof of coverage. Your inability to do so can result in the state suspending your driving privileges. Specific penalties vary by state but can include suspended driver's licenses and vehicle registrations for up to two years. Some states may confiscate your car license plates if you have multiple violations of not maintaining car insurance as required by the law.

Obviously, if you are in a car accident, insurance can help cover some of the costs associated with vehicle damage and medical expenses if there are injuries. Unfortunately, many people are willing to settle for minimum coverage because of a false belief that they will not be in an accident.

Worse is the belief that if you are involved in an accident that is not your fault, you have no need to worry about legal action so you do not require additional coverage. The reality is that if you cause an accident and do not have sufficient coverage, the other party can file a lawsuit against you for damages. Or if you are the victim of an accident caused by an uninsured driver, without sufficient coverage on your end, you may be forced to sue the other driver for compensation.

Financial Reasons to Have Insurance

It costs money to reinstate your driving privileges if they are suspended. Additionally, anytime a lawsuit is filed against you, your personal assets are at risk. The outcome of a lawsuit can be particularly devastating if you did not have insurance at the time because you were driving illegally. In some states, you risk losing your home if you are unable to adequately defend yourself against a civil lawsuit.

Additional Reasons to Have Insurance

Losing your driving privilege or having to miss work to attend court hearings may jeopardize your job. At minimum you can lose wages due to court appearance. A good policy will actually cover lost wages under these circumstances up to a specific amount. Your policy may also pay for a rental car if your car was damaged in an accident.

At the end of the day it is easier and less expensive to obtain auto insurance. You can quickly compare online rates from multiple insurance companies so you can get the best deal with great coverage today!