I am a civil citizen so why do I need auto insurance or car insurance?

car insurance

Car insurance is important protection not only for just your car, but for your financial liability. For instance, if you get into a car accident without insurance, you could potentially be stuck paying for hundreds of thousands of dollars based on the damages and injuries.

For understanding that why car insurance is important, first you have to understand how car insurance or auto insurance works as a whole. This type of car insurance policy doesn’t only protect your car in the event of an accident; rather it also protects you — from financial liability, medical expenses, and also from legal consequences.

Unlike, say, life insurance, car insurance is mandated for most drivers. All but two states require you to have auto insurance so that you can pay for the damages you’re liable for a car accident. If you don’t have car insurance, you’re just risking your financial liability in the event of an accident, which could eventually cost you hundreds of thousands of dollars as I mentioned earlier. And you would be stuck paying out of pocket for repairing to your own vehicle, too.

If we talk about the importance of having car insurance then definitely some terms will come forward. Auto insurance is important because it is a financial protection in case you get into a car accident and damage someone else’s vehicle or injure them.

But if you have car insurance you be covered different peril, like falling objects, fire, or theft. If you don’t have car insurance for you and your vehicle, you could eventually be breaking the law. Driving without car insurance policy could result in fines and license suspension based on the area you live in. The purpose of having auto insurance is so you’re able to compensate others for damage you cause, and so you don’t need to get stuck paying out of pocket for the expenses from a car accident or a different kind of collision, like if you drive into a pole or a free ways.

Depending on the type of coverage of your car insurance, you could be protected from a variety of perils, such as:

  • Fire
  • Theft
  • Vandalism
  • Hail damage
  • Animal damage (like if you hit a deer or if rats infest your engine)

If you’re in an accident having no car insurance, depending on the state you live in, you will have to pay fines for not having insurance, plus additional fines if you’re ticketed for the accident. The on an average amount of a car accident can be staggering – in 2013, the average insurance claim for body injury is $15,506, according to the Insurance Research Council. By chance, if you don’t have particularly auto insurance and you cause an accident, you must be on the hook for paying for all of the damages and injuries you or your car occurred.

At the same time if you have auto insurance that means you are lucky because your policy would cover all the damages for instance the other driver’s medical bills and the cost to replace their car (up to your insurance policy limits). According to the law, you’re liable for the damages done to the other person and their property in a car accident you cause, so if you don’t have insurance and you can’t afford to pay for the other driver’s repairs and medical bills, even you could end up in jail, or a court could decide to paycheck every month to the person you hit.

On the other hand, you will need to submit proof of having insurance and pay more fees before you could get your license reinstated and your vehicle back. So that’s a long process you know. Like a wiser person, when you get insurance, you may need your insurer to file an SR-22 form with your state as a way of proving that you’re now insured.


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