Why You Need Car Insurance

Think you don’t have reason enough to buy car insurance? Think again. There are some seriously compelling reasons why you need it, and not just because the law says you have to. There are the big things you might be overlooking.

Car insurance is important for just about any driver, and it’s required if you operate a vehicle in most states. If you think you can get along without auto insurance, you are gambling with your economic future and possibly even your freedom.

We are a society that relies on our cars to get us where we need to go. If you get into an accident and can’t afford to fix your car, you will be stuck without transportation. That can cause problems at work and in your relationships, and could even prevent you from finding another job if you don’t have reliable transportation to and from work.

Car insurance protects your assets. Even if you have enough funds in your bank account to make the necessary repairs to your own vehicle, can you afford to fix the damages done to the other driver’s vehicle? Depending on what type of car or truck is involved in an accident, as well as which driver was at fault, those repairs could cost more than you can afford.

If you are still making payments on your car, your lender is likely to require full coverage. This means that comprehensive policies, which include collision as well as loan payoff amounts, are probably required. If you are still paying for your car, you will likely have to get full coverage.

Most states require auto insurance, too. Even if you own your car outright and think you can either avoid accidents or pay out-of-pocket for any damages, you might be breaking the law if you’re driving without insurance.

Most states require at least Personal Liability and Property Damage coverage, while others may require no-fault auto insurance. No-fault insurance policies pay at least some claims no matter who is at fault. Check with your agent to see what is required in your state.

If you buy only the minimum basic coverage, you may find that your own car’s damage isn’t covered when you get into an accident. It’s best to buy more insurance than the state minimum requirement, since chances are you will need the help to fix your vehicle if you have a crash.

Collision coverage will cover the damages to your car in case of an accident. You also may be able to add on roadside assistance and rental car coverage when you buy a comprehensive policy.

Consider the costs if you are hit by an uninsured driver or if someone hits and runs. What if the other driver is drunk behind the wheel? You need to look at your options for uninsured/underinsured motorist coverage. Make sure your medical treatments are covered, too.

Your auto insurance agent can explain to you the details of any of these policy questions. Just be sure to compare rates and plans to get the best deal.

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