5 Reasons that You Need to Have Car Insurance

Why You Need to Have Car Insurance

  • Most States Require Some Type of Insurance
  • Other Drivers Might Not Have Insurance
  • Insurance Covers Bodies As Well As Vehicles
  • Having Insurance is Less Expensive Than Not
  • Insurance Offers Peace of Mind for Drivers

It might sound incredible, but some drivers drive their vehicles without insurance coverage despite there being several reasons that you need to have car insurance. With a safe driver record, car insurance is incredibly affordable, and the benefits tend to outweigh the monetary costs of keeping an active car insurance policy. Some car dealerships won’t even let a driver leave their lot without the driver providing proof of insurance coverage. Here are several critical reasons to have a car insurance policy for a vehicle.

Most States Require Some Type of Insurance

Only two states in the country don’t require car insurance, but those states still do require that their drivers take financial responsibility for accidents when they are at fault. New Hampshire doesn’t require insurance, but drivers are responsible for up to $50,000 in liability and $25,000 in property damage if they cause an accident. Virginia doesn’t require insurance either, but drivers are still responsible for accidents they cause. In every other state, some coverage is required where a driver will need an insurance policy or need to provide proof of financial responsibility in the form of a bond. A bond is purchased by a driver to guarantee financial responsibility in the event of an accident.

Other Drivers Might Not Have Insurance

Car insurance is essential for covering damage when a driver causes an accident, but it’s also quite helpful when the accident involves another driver who doesn’t have insurance. Car insurance policies routinely feature uninsured motorist or underinsured motorist coverage, which helps pay for damages when another driver causes an accident, and he or she doesn’t have an insurance policy or doesn’t have sufficient coverage on that policy. According to the Insurance Information Institute, somewhere between 12 and 15 percent of drivers at any one time don’t have car insurance. The cost can vary for this facet of an insurance policy, but it may cost far less to carry it than to pay thousands of dollars out-of-pocket, when someone else causes an accident and has no insurance coverage.

Insurance Covers Bodies As Well As Vehicles

Car insurance helps pay for a vehicle when it’s damaged in an accident, but sometimes an insurance policy’s greatest strength is in its medical coverage for injuries sustained during the accident. Medical coverage not only covers the driver of a vehicle, but it also covers all the passengers in the car and can provide crucial financial support when a driver’s health insurance policy isn’t enough to cover the entire cost of the medical costs associated with the accident. Some policies even cover drivers when they aren’t in a vehicle and are struck by someone else’s car while riding a bicycle or walking.

Having Insurance is Less Expensive Than Not

According to the Rocky Mountain Insurance Information Association, the average claims for property damage can exceed $3,200, and claims for bodily injury can reach more than $15,000. Throughout a car’s lifespan, it will often cost less to cover the car than it will to pay, out-of-pocket for an accident. Additionally, insurance coverage helps drivers avoid any fines they might otherwise incur from driving in their state without an insurance policy.

Insurance Offers Peace of Mind for Drivers

It’s very possible that a driver will never have the occasion to use his or her policy. Cautious drivers and people who don’t drive long distances may go years or decades without having the slightest fender-bender. However, all it takes is one lapse in judgment or the poor driving skills of another driver to cause an accident. Insurance offers the rewarding and straightforward peace-of-mind needed for driving without stress and anxiety.

Related Resource: 10 Best Cheap Car Insurance Companies

The benefits of having car insurance are financial, as well as mental, and drivers can avoid dealing with many hassles when they choose to buy a simple auto insurance policy. No one wants to think about the “what if” of a car accident, but the benefits tend to far outweigh the costs of a policy. Anyone thinking about driving without insurance should consider these important reasons you need to have car insurance before taking to the road without a policy.