4 Reasons You Need Car Insurance
If you own a car, then you need car insurance. There are many reasons why you may need auto insurance, which is why you should make sure that you don't just have car insurance, but that you have the right coverage as well.
Reason #1: Mandatory by State Law
In most states, you are required to carry a minimum of car insurance. That minimum amount of insurance is generally going to include liability insurance. If you damage someone else's vehicle and you are responsible for the damage, liability coverage will help ensure that you don't have to pay out of pocket to fix the damage.
Not carrying insurance can put your personal finances at risk, but not carrying insurance can also get you in trouble with the law. That is why you should always carry at least the mandatory minimum coverage.
Reason #2: Financial Protection
Second, carrying car insurance can provide you with financial protection. If you are held responsible for an accident, you can end up being held responsible for the other party's medical expenses and property loss. With the right kind of liability insurance, you will be protected against having to pay for that type of damage out of pocket.
With the right policy, you can also protect yourself financially from having to pay to fix up your vehicle after being involved in an accident or paying for your own medical bills after an accident. With the right insurance, all those expenses will be covered after you pay your deductible.
Reason #3: Lender Requirement
If you are leasing your vehicle or financing the purchase of your vehicle, then your lender may have a clause in your contract that requires you to carry collision coverage and comprehensive coverage. This is beyond the state minimum requirement and is more about protecting your vehicle and providing you with money to fix it or replace it if it is damaged in any way.
Reason #4: Protect Passengers
Finally, with the right coverage, such as medical payment coverage and personal injury protection, you will be able to help protect your passengers as well. If your passengers are injured in an accident, your insurance will pay their medical bills.
It is important to carry insurance. In most states, you are required to carry a certain amount of coverage by state law. The right coverage can also provide you with financial protection against lawsuits. Some lenders also require you to carry comprehensive and collision coverage policies. Additionally, you can also protect your passengers with the right policy coverage. It is just smart to carry adequate insurance.