Nobody likes paying car insurance. But the truth is, it’s better to have it and not need it than to need it and not have it.
There are many different types and levels of auto insurance coverage. They can cover liability, including damages and injuries incurred by the other driver and legal fees if you are taken to court, as well as any personal damanges or injuries.
And yet, according to a 2021 study by the Insurance Research Council (IRC), one in eight drivers in the U.S. is uninsured!
This is not a smart way to live, and I’ll tell you why.
Here are the top six reasons you should get car insurance:
- It’s the law.
The first reason to get car insurance is that it’s required by law. A minimum liability insurance is mandatory in 48 states.
In the other two states, Virginia and New Hampshire, you must pay a large fee and/or prove that you have enough to cover a car accident on your own to get away with not having car insurance.
But in the rest of the U.S., if you get caught driving uninsured, you could face steep fines, license suspension, and even jail time.
- Your lender may require it.
If you financed your vehicle, you may be required to get car insurance by your lender.
Why? Forcing you to get car insurance helps protect their investment. After all, your car serves as collateral on the car loan, meaning if you fail to meet the loan agreement, they can repossess it.
But after a car accident, your car may not be worth much (if anything). So it’s in your lender’s best interest to have you insure it.
- It protects you financially.
This is perhaps the most important reason to get car insurance. Without it, you could end up in financial ruin.
A single car accident can lead to huge costs: car repairs, medical bills, physical and mental therapy, job loss, disability, and more. And if you’re at fault for the accident, those costs may be multiplied by the number of other vehicles involved.
Plus, if you don’t have liability insurance or the means to pay out of pocket, the other party may sue and come after your assets—like your investments or even your house.
To put it simply, there are many ways for a car accident to take a toll on your finances. In some cases, it may be impossible for you to recover.
So definitely get liability coverage.
But also consider getting collision coverage, uninsured and underinsured motorist coverage, collision coverage, medical payments coverage, and personal injury protection. They’ll help ensure you’re financially protected even when you’re not at fault and the other driver can’t compensate you.
- It can protect you from non-accident related damages.
Another type of auto insurance worth considering is comprehensive coverage. It will protect you against non-accident related damages like vandalism, theft, and severe weather events like storms, wildfires, and hurricanes.
With comprehensive coverage, you can rest assured that no matter what happens to your car, it’ll be covered.
- It can help protect other passengers in your car.
Having auto insurance isn’t only about protecting yourself and other drivers. It’s also about protecting any passengers in your car.
Medical payments coverage and personal injury protection may help cover your passenger’s medical bills, too.
Plus, if you’re at fault for the accident, you’ll be liable for any injuries to your passengers and any damage to their property (e.g. expensive luggage) anyway.
- It gives you peace of mind.
Lastly, having car insurance gives you peace of mind. It lets you drive, knowing that even if you get into an accident, you’ll be okay financially.
After all, a car accident can happen to anyone, even the best of drivers, because you’re not always the one at fault.
Instead of constantly worrying about what will happen to you and your property in the event of an accident, rest easy with good auto insurance coverage.
The bottom line
Not all car accidents can be avoided. But with auto insurance, you can significanly minimize their impact.
If you don’t know how to file an auto insurance claim, have an experienced auto accident attorney help you.
In the modern world of auto insurance, there’s simply no good reason not to insure your car. So do it now if you haven’t already!