Car insurance is important to have for a number of reasons, the big one being it's generally required by law! But if that isn't enough to convince you, here are some other reasons it's important to have car insurance:
1) Car insurance protects YOU. Your bodily injury and property damage limits determine how much the insurance company will pay if you are sued. So, if you have bodily injury limits of 50/100, your insurance company will only pay $50,000 per person and a total of $100,000 per accident. If the amount you are sued for is $350,000, guess who is paying the rest...
2) Car Insurance protects your PASSENGERS. What if you are in an accident, the OTHER driver is at fault, but they don't have any or enough insurance? That is when your insurance can help again, IF you have uninsured/underinsured motorist coverage. This coverage is similar to the bodily injury/property damage coverage already discussed, but this coverage is to protect you and your passengers in case you are hit by an uninsured or underinsured motorist.
3) Car Insurance protects your CAR (and your wallet). If you have Comprehensive (or Other than Collision) and Collision coverage on your car, then your car can be repaired and the repairs will be paid for by the insurance company, minus your deductible. This coverage is generally required ONLY if you have a loan or a lease on the vehicle, but it could be a good idea to sit down with your insurance agent and see if your vehicle should have this coverage.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An automobile is an expensive investment. An automobile can be a deadly instrument. When you own and operate an automobile you are accepting both of these major risks. In addition people will travel inside your car and you are responsible for them as well. If you have an at-fault accident with serious injury to the occupants of the other car, occupants in your car and damage to both vehicles, the price can be astronomical. Things could be even worse.
That is a great question, and one I get a lot! The first reason that you should have insurance is that it is required by law to have. If you are going to drive, you'd better have a policy. The penalties for driving uninsured are stiff, and have long lasting negative effects. The second good reason is that generally people don't have the money laying around to purchase a second car when theirs is damaged or destroyed in an accident. The insurer picks up the tab (after deductible) instead of you, when you have insurance.The third reason is to protect against damages from a lawsuit filed as a result of an accident, having the insurer pay instead of seeing your check garnished is a really good thing. I hope that helps, thanks for asking!
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1) Car insurance protects YOU. Your bodily injury and property damage limits determine how much the insurance company will pay if you are sued. So, if you have bodily injury limits of 50/100, your insurance company will only pay $50,000 per person and a total of $100,000 per accident. If the amount you are sued for is $350,000, guess who is paying the rest...
2) Car Insurance protects your PASSENGERS. What if you are in an accident, the OTHER driver is at fault, but they don't have any or enough insurance? That is when your insurance can help again, IF you have uninsured/underinsured motorist coverage. This coverage is similar to the bodily injury/property damage coverage already discussed, but this coverage is to protect you and your passengers in case you are hit by an uninsured or underinsured motorist.
3) Car Insurance protects your CAR (and your wallet). If you have Comprehensive (or Other than Collision) and Collision coverage on your car, then your car can be repaired and the repairs will be paid for by the insurance company, minus your deductible. This coverage is generally required ONLY if you have a loan or a lease on the vehicle, but it could be a good idea to sit down with your insurance agent and see if your vehicle should have this coverage.