In this blog you will get to know why car insurance is important and what if you don’t purchase car insurance. So lets get started-
Car insurance protects you not only from damage to your vehicle, but also from financial liabilities. You might be responsible for hundreds of thousands of dollars in damages and injuries if you get into an accident without insurance.
To comprehend why car insurance is necessary, you must first comprehend how car insurance works. Car insurance does more than just cover your vehicle in the event of an accident. It also safeguards you against financial liabilities, medical bills, and legal ramifications.
Unlike, say, life insurance, most drivers are required to have automobile insurance. Only two states do not need you to carry auto insurance in order to pay for the damages you are responsible for in the event of a car accident.
You risk financial culpability if you don’t have car insurance in the event of an accident, which could cost you hundreds of thousands of dollars. You’d also be stuck paying for your own vehicle’s repairs out of pocket.
Also read: What is High Risk Auto Insurance?
Why is it important to have car insurance?
Car insurance is necessary because it provides financial protection in the event that you are involved in an automobile accident and cause damage to or injury to another person’s vehicle. Car insurance can also cover damage caused by an accident or another covered risk, such as falling objects, fire, or theft.
You may be breaking the law if you don’t have automobile insurance for yourself and your vehicle, depending on where you reside. Fines and licence suspension may be imposed if you drive without insurance.
The aim of obtaining auto insurance is to be able to compensate others for damage you do, and to avoid having to pay out of pocket for expenses incurred as a result of a car accident or another type of collision, such as crashing into a pole.
Also read: What factors influence car insurance rates?
You may be protected from a range of risks depending on the type of coverage included in your car insurance policy, such as:
- Vandalism is a type of criminal activity.
- Hail damage
- Animal harmed (like if you hit a deer or if rats infest your engine)
Car insurance is necessary for reasons other than crashes and accidents. If your automobile is stolen, you can make a claim with your vehicle insurance provider, and they will reimburse you for the cost of replacing it up to the amount of your policy.
However, if your automobile is stolen and you don’t have car insurance or simply have a limited level of coverage, you’ll be on the hook for the cost of a new vehicle.
What happens if you get into a car accident and don’t have car insurance
If you’re in an accident and don’t have auto insurance, you could face fines for not having insurance, as well as additional fines if you’re charged for the accident, depending on your state.
The average cost of a car collision is staggering: according to the Insurance Research Council, the average insurance claim for bodily injury in 2013 was $15,506. If you don’t have auto insurance and cause an accident, you may be held responsible for any damages and injuries.
If you have auto insurance, it will cover the other driver’s medical expenses as well as the cost of replacing their vehicle (up to your insurance policy limits).
You’re legally responsible for the damages you cause to another person and their property in a car accident you cause, so if you don’t have insurance and can’t afford to pay for the other driver’s repairs and medical bills, you could face jail time or a court order that a portion of your paycheck be sent to the person you hit every month.
Also read: Car Insurance full coverage explained
What happens if you get pulled over and don’t have car insurance
Except for Virginia and New Hampshire, driving without auto insurance is unlawful in every state. It’s a problem if you’re driving and don’t have proof of insurance. You don’t even have to be pulled over in some places to be detected driving without insurance.
Many states regularly monitor whether registered vehicles in the state have insurance, and if they discover you don’t, they may levy penalties or suspend your licence. States need drivers to obtain insurance so that they are protected and able to pay for damages if they are involved in an accident.
If you are stopped, the police will request evidence of insurance from your automobile insurance provider. If you don’t have it, what occurs next is determined by your current condition.
There are a few things that can happen if you are pulled over without vehicle insurance:
- You’ll almost certainly be ticketed and fined, which might amount to hundreds or even thousands of dollars.
- Your licence could be suspended.
- It’s possible that your car will be impounded.
Before you can get your licence and vehicle returned, you’ll need to present evidence of insurance and pay additional fees. When you buy insurance, your insurer may need to file an SR-22 form with your state to prove that you’re covered.