Why Do I Need Auto Insurance?

Auto insurance is mandatory in every state, but beyond the legality of it there are many good reasons for auto insurance. At its core, auto insurance is a smart way to protect yourself from unexpected and expensive events.

In the unfortunate circumstance that you’ve caused the accident auto insurance can help you pay for the damages you’ve made happen. If you don’t have insurance you may find yourself mired in bankruptcy due to unintentional injuries, or even deaths, to other drivers. Not to mention the property damages that you can cause with you car. Auto insurance helps cover your legal liability up to hundreds of thousands of dollars. Without this insurance all of your personal assets can be placed at risk to pay back the damages done. Not to mention if you are sued, auto insurance also covers the cost of your defense.

Beyond the basic liability coverage you can also have auto insurance that helps you replace or repair your own vehicle in the event of an accident. It helps protect your investment in the ability to get from point A to point B. Since your car has the potential to be very expensive to repair if damaged this is an excellent reason to have insurance. And it is effective whether the accident was you fault or the other driver’s fault. Besides that it also covers things unrelated to driving such as theft, vandalism and natural disasters.

Additionally, auto insurance can help pay for medical bills after an accident. It will pay for yours if the accident was your fault or it can pay for the other motorist if you are at fault. Either way you don’t have to pay the bills out-of-pocket.

Auto insurance also protects you from uninsured or under-insured motorists. So it provides peace of mind every time you get in the car. And really, it is the law in most states. If you are caught driving without auto insurance you can face large fines, you can lose your license and you can even go to jail.