Are you cautious about money? Do you feel like you pay way too much in insurance premiums when you never file any claims?
If pinching pennies is important, you’re probably wondering if you can just forego carrying insurance. Do you need car insurance after all?
Here are all the reasons car insurance is a good idea, and more about what happens when you don’t have coverage.
Required By Law
Most states require you to carry at least basic insurance coverage for liability. There are a few states that don’t require it, like Mississippi or New Hampshire. There you can pay a bond to the state instead.
In Virginia, you can pay a fee instead of carrying insurance.
But what happens if you don’t have insurance in a state where it’s required and you get caught? The penalties vary from state to state but include serious fines and possible jail time. Some states take away your driver’s license, too.
A few states put extra incentives in place besides requiring insurance. Like they prevent you from filing suit for damages other than economic ones if you didn’t have insurance at the time of the accident. You can check out this page for more about lawsuits when you’re uninsured.
Other states won’t give you a license at all if you can’t show proof of insurance. They might make exceptions for truck drivers who work for a fleet if the fleet company insures them, but they have limitations on their license. They still wouldn’t be able to operate their own vehicles unless they personally carry insurance.
Protecting You From Bad Drivers
If you’re a good driver, you may think you won’t get in an accident. So why pay all that money in insurance premiums when you won’t ever file a claim? The reality is that you still have to watch out for those who aren’t as good on the road as you are.
Even if you’re the best driver in the world, you won’t always be able to avoid every accident. Sometimes when other people aren’t paying attention or they make bad decisions, you’re at the receiving end of the collision. While this is annoying and even dangerous, it’s the truth.
Protect yourself from unwanted issues in an unavoidable collision with a bad driver when you carry insurance. Your provider can help you through the claim and get you back on the road quickly.
Do You Need Car Insurance To Save Money?
It’s true that your insurance premiums seem like a lot of money to hand over every month, six months, or a year. But when you compare to the amount that you’re covered for and how expensive accidents can be, you actually save money in the event of a collision or other accident.
Not only can insurance cover expenses like rental cars, towing fees, and medical bills, it helps with the traditional costs like repairs or car replacement if your vehicle gets totaled. The small fees you pay in premiums add up. But they will never be as high as what you’d pay out of pocket for the large bills after an accident.
If You Have A Loan
The company who gave you the loan wants to make sure that you’ll be able to pay for the car, but they understand that you wouldn’t want to continue paying on it if it’s wrecked in an accident. This is why they offer you GAP insurance, which covers the amount you still owe on the loan (or a lease, if you’re leasing your car). It costs extra on top of your monthly payment, but then you have peace of mind that you’re covered in case anything were to happen.
Most loan and lease companies also require you to carry full coverage on your vehicle until the lien is satisfied. While you may only want to pay for PL-PD or liability coverage, the lienholder needs to know that your vehicle is totally covered in a collision or other type of accident. They will be listed on your policy as the lienholder until you’ve paid it off.
Who Rides With You?
You aren’t the only person you have to worry about when you’re driving. If you ever have any passengers, you’ll want to make sure they’re covered as well. It’s hard to think about, but auto accidents can be very dangerous and often mean serious health issues and emergency medical care.
The costs for this type of treatment can be astronomical, meaning you’d be paying for them for many years. Fortunately, auto insurance also covers your passengers up to a certain amount, and chances are it’s quite a bit higher than you can afford out of pocket. Your insurance is there to cover your passengers as well as yourself.
Make sure that you carry insurance to help you passengers get the medical treatment you need if they’re injured in your vehicle. Whether they only require a doctor visit or if they have to have surgery and an extended hospital stay, your insurance can help pay for their needs.
Covering Your Bases
If you’ve asked yourself do you need car insurance, then you need to know all the other factors involved, like the laws in your state. You also should have protection from bad drivers and unavoidable incidents, especially if you have a loan or a lease.
Keep in mind you can save money, too, on the extra expenses, even though premiums can seem like a lot of money.
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