Admittedly, car insurance premium rates can get pretty high and people wonder if they are even necessary. Even those people whose premiums are within their budget wonder if they are getting their money’s worth. After all, it is another bill to worry about. Is car insurance required or can drivers get along driving their vehicles without it? To answer the question: yes, it is necessary. Here are several reasons why.
Law Requires It
The minimum car insurance requirements may differ from state to state and some may be stricter than others. Regardless of the state, federal law dictates that a person must have auto insurance in order to drive a car on the road. If a person is driving a car without insurance and that person is caught, there will be penalties. The driver may have to pay some fines or the driver’s license might be suspended or taken away. If a person without one has caused an accident, that person may get sued and end up in jail if the accident is serious enough.
Protection from Financial Responsibilities in the Event of an Accident
Accidents are sometimes unavoidable. If an accident happens as a result of your driving, meaning you are at fault, car insurance protects you. It will cover a policyholder’s legal and financial liability. This means that it will pay for the repair and replacement of a vehicle or vehicles damaged in the accident. If a person was injured during the accident, auto insurance can cover for the medical costs as well, depending on the type of coverage the policyholder has. Without one, you will have to pay for the repairs and medical bills, which can get really expensive and even accumulate, out-of-pocket.
Protection for the Owner
Auto insurance does not only protect policyholders from any financial responsibilities on an accident they have caused. It also protects them against physical harm caused by other drivers on the road. Auto insurance not only covers the policyholder, however. It also protects the passengers in the car during an accident as well as family members who drive the insured car. Additionally, if you are involved in an accident that is not your fault and the driver who caused the accident does not have car insurance, you can rest knowing that your insurance can protect you. It can be nice to have car insurance required. Especially if it is cheap…like cheap auto insurance for teenagers.
Safeguard Your Investment
Like your house, apartment, or business, a car is an investment and must be properly taken care of. Sometimes, however, things happen. For example, a tree may fall onto a car during a storm or a big flood may sweep someone’s car away. Additionally, a car can get stolen, damaged, or vandalized. Auto insurance can protect you and your vehicle as long as your coverage permits it. Many people get covered for burglary, accidental harm, and fire. Without insurance, you will have to pay for the car repair costs yourself if such an unfortunate thing happens.
Although it may be financially inconvenient for many people to be paying monthly for auto insurance, it is a necessary protection that everyone who owns a car should have. Car insurance provides car owners with financial protection against vehicle damage, physical injury, and liabilities that result from car accidents or collisions. Having car insurance required is not all that bad.
Car insurance is required by law, but it doesn’t mean that you can’t get cheaper car insurance. You can save money on car insurance for college students, seniors, women, and the list goes on.