Do you really think you can get by without auto insurance? If you don’t own a car and will never drive, then yes. You have no real reason to purchase auto insurance. However, since you are here, there’s a really good chance you are new to auto insurance and are looking to purchase your first policy, or you have an existing policy but you are ready to switch companies for a new policy, or you are simply trying to learn more about auto insurance. We can help you with all three, but right now we will prove why all drivers need auto insurance in the first place.
#1 – It’s the law
That’s right, folks. By law every driver is required to carry auto insurance or another form of financial responsibility in almost every state. The law is designed to protect drivers from being forced to pay for someone else’s mistake, which means essentially it is protecting you from having to pay for damages made to your car by another driver’s negligent driving.
The specific requirements vary from state to state, but almost every state requires a minimum amount of bodily injury liability and property damage liability. These two coverages will pay for the damages you make to another person’s car, property, and/or body as part of your negligent driving. The amount you purchase will be the limit of what the insurance company will pay out to the other party on behalf of you after you have filed the claim, which may include any death expenses. Make sure to purchase enough of both bodily injury liability per person and per accident, as well as enough property damage liability. Any remaining balance after the insurance has taken care of their part will be turned over to you, which you must pay for out of your own pockets.
#2 – It’ll pay off when you make a claim
Carrying auto insurance will not only give you peace of mind as you or members of your policy drive around town, but paying regularly for auto insurance will literally pay off should you ever need to make a claim. The cost to repair vehicles, or especially to replace them should they be totaled, is quite expensive due to the high cost of cars these days. Knowing you can rely on your auto insurance company to pay for these expenses can ease the stress that is felt after an accident.
Not only can your auto insurance policy pay for the damages you cause to another person’s property, but with the right coverage purchased, your auto insurance policy can also cover the damages that come upon your vehicle, whether you were at fault for the accident or not. Note, however, that in purchasing only the state minimum requirements, your vehicle and injuries will not be covered by your insurer.
#3 – It can help with medical bills
Even if you have access to decent health insurance, you should be aware that auto insurance companies offer ways to also provide medical bill assistance. Coverage options known as medical payment (med pay) and personal injury protection can pay for the medical bills that are a result of the accident. One perk of med pay is it will cover chiropractor costs, when regular health insurance usually won’t. Both med pay and personal injury protection are worth considering, especially if you are a regular driver of a carpool group. Personal injury protection will cover the medical expenses of your passengers, whether or not they are members of your policy, up to the amount you have purchased, and so will pedestrians that have been hit by your car.
#4 – Comprehensive and collision are required by your loan/lease company
Any time a vehicle is not 100% owned by the driver, but is under a loan or lease, the driver will be required by the loan or lease company to carry comprehensive and collision coverage on their auto insurance policy. This is so the company will be paid their money in full even if the vehicle has been damaged or stolen.
Because newer vehicles lose their value quickly, there tends to be a gap between the amount owed for the vehicle and the cash value of the car. If the car is damaged or stolen and the insurance company only pays the cash value, which happens to be less than the owed amount at the time, the remaining balance is to be paid by the driver (or the name carrying the loan). A coverage called GAP insurance will cover this balance so the driver isn’t paying out of pocket for the difference.
#5 – Get financially protected from drivers who fail to carry auto insurance
Another reason to get auto insurance is because there are drivers out there who refuse to carry any auto insurance or a small amount. Consider a coverage option known as uninsured or underinsured motorist liability is a possible candidate for your auto insurance policy. By purchasing, your auto insurance company agrees to pay for certain damages or injuries that are caused by another driver who carries little to no auto insurance. Sure, you could try to sue the driver for damages, but if they don’t have any money or assets, you won’t be seeing much money from them and you will be left paying the bill when it was their mistake.
If you are tempted to try to get away without having auto insurance, think twice, and then think a little more. More and more State Departments of Transportation and Motor Vehicle Divisions are using databases that keep track of driver’s auto insurance policies, such as when they expire and get renewed. Auto insurance companies notify these departments when a policyholder has canceled, and if another company does not notify the departments with a new policy for that person, the departments go after them to find out why they no longer have auto insurance. It is also required to show proof of insurance to a police officer when in an accident, and sometimes officers ask for your proof when pulled over for a traffic ticket.
Consequences for not having auto insurance can get expensive and brutal. The first offense usually includes a fine of a few hundred dollars and the suspension of the vehicle’s registration or the driver’s license. Repeat offenders see heftier fines and possible jail time.
You need auto insurance if you are going to drive a vehicle on public roads. There’s no getting around it. Make the smart decision and purchase auto insurance to protect yourself and family members. If you don’t know how to purchase auto insurance, we can help there too. Start by entering your zip code in the appropriate box at Online Auto Insurance and go from there.
