Why Do You Need Auto Insurance?

You may only see it as a burden right now, especially if you are young and paying high premiums. However, it can protect you from fines, financially ruining liability claims and pay for damages to your vehicle. Car insurance is something you don’t want to find out how useful it can be after you suffer a loss that could have been compensated if you had the right policy.

Vehicle insurance provides essential protection for policyholders against responsibilities arising from causing vehicular accidents (mandatory with minimum limits) and pay for their own losses (voluntary). State enforced minimum liability limits are generally increased in a standard full coverage auto policy that also has Collision and Comprehensive components. You will hopefully appreciate the value of automobile insurance better after reading the following reasons to buy it.

  1. It is something you must buy

You need insurance to drive in the US. Each state has its own minimum requirements and anyone who wants to own and drive a vehicle must first comply with these laws. So, driving is not an automatic right but it is a privilege only gained after complying with laws governing licenses, registration and policies.

Failing to comply will result in fines, loss of license, vehicle registration and even jail sentence, depending on where you live. You cannot continue the journey any longer if you are caught and have no proof in many states and the car can be impounded.

an automobile accident

  1. Accidents do happen

According to NHTSA, over 6 million vehicular accidents happen in the US every year. And according to National Safety Council, average property loss in an accident is over $10,000. This doesn’t include injury costs that we all know can be enough to bankrupt anyone. So, how are you supposed to handle these losses out of pocket?

You can buy cheap full coverage auto insurance that includes Liability, Collision, Comprehensive and Medical Payments today and pass all those risks onto to the provider in return for a manageable premium.

  1. Compensation for injuries you cause

Every time you start the engine there is a chance that you may cause an accident and injure innocent people. Can you pay for those injuries bearing in mind the current cost of hospital treatments? How would you feel about it if the victims were left to suffer financial consequences of your actions as well as physical injuries? Why should anyone have to pay for mistakes you made?

  1. Legal protection

Do you think those victims are going to just go away because you have no coverage? They will sue you for everything you got. They can sue you even if you have vehicle insurance and it is there to defend you against lawsuits arising from injury claims and accidents. Otherwise, you will have to sell everything you have to pay for the damages and injuries you caused. Courts will order deductions from wages until victims are fully compensated, if you don’t own anything of value. Sometimes, damages can be so large that you cannot pay them until the end.

So far, we have only looked at injuries. How about damages you caused to other people’s automobiles and properties? They can easily reach tens, even hundreds of thousands of dollars. This personal liability protection alone is enough to explain the importance of buying auto insurance.

  1. Auto theft and vandalism protection

When you add Comprehensive coverage on top of compulsory liability you are protected if the auto is stolen or vandalized. How would you feel when you realize it is stolen and never coming back? Now how would you feel if you had no policy to pay for it?

  1. Protection from natural disasters

Natural disasters like hurricanes, floods, storms, landslides and snowstorms are not uncommon in the United States. When the hell is breaking out outside, the last thing you would want to worry about is the auto and you don’t need to worry if it is insured.

  1. Life can be difficult if you lose your car

Most people are dependent on private automobiles to get to work or do anything social. And most people have tight budgets that they cannot cope with unexpected auto repairs or loss of vehicle altogether. Why is automobile insurance important for work? If you cannot get to work because you cannot pay for auto repairs you lose your job. If you cannot drive around and about you don’t enjoy life as much. A policy with physical damages coverage will pay for repairs and damages to your car or pay enough money to replace if it is totaled or stolen.

Buying a car is one of the largest investments in many people’s lives. Losing it would cause serious hardship and disappointment. Luckily you can protect this large investment with manageable monthly payments. You can also buy Uninsured Motorist protection so that damages and injuries are paid if someone without coverage causes those damages and you are the victim of a hit and run accident.

  1. You cannot get auto loan without insurance

Large numbers of motorists rely on auto loans to buy the vehicle they want. If you take a loan to buy your automobile you will have to buy a pretty decent policy with Collision, Comprehensive and GAP insurance. Without it there is no way any lender would borrow money on something moving on four wheels. And without insurance, not only you lose your car but you are left to pay the loan in full. GAP pays the outstanding loan if the vehicle is totaled and the current value of the auto is less than the loan.

  1. Protection for your way of life

A vehicle accident has the potential to ruin someone’s financial health. Not many people can shoulder a huge third party claim, buy another vehicle after a total loss or even pay for repairs out of pocket. Furthermore, the consequences of such losses can be heavy enough to spiral into total ruin with loss of job and property that it is in a way turn the question around becomes why wouldn’t you buy car insurance.

  1. Something to sleep better at night

Many people buy insurance because it helps them sleep better. Otherwise, they can be consumed with worries for their vehicles, properties, businesses and leaving their families without any financial backup.

These are only some of the main reasons explaining why you need vehicle insurance. It is worth pointing out that a few of those 10 reasons are there to protect your own losses. It may be mandatory but it helps motorists in many ways too. Then, they can arrange the best backup plan for their circumstances.