Why Do I Need Car Insurance?

March 16, 2018

Traffic street

Car Insurance can be expensive, especially if you don’t have a great driving history, drive a pricier car or have the ultimate burden: the teenage driver. So naturally, when it comes to cutting costs, car insurance can seem like an easy way to save some money.

What you may not realize is that you don’t really have a choice: to legally drive a car, you must prove that you have car insurance. Unless you decide you want to get friendly with your local bus driver, you better pay those premiums. Now you’re resigned to dropping hundreds of dollars each year, you may start to question: why do I even pay for this?

What’s the Law?

Most people don’t give it much thought, but every driver needs car insurance. A driver without car insurance places themselves at serious legal and financial risk. For almost all states you are required to have an insurance policy. In a handful of states you can post a bond, which allows you to drive without insurance. This offers you no coverage in case of an accident, which could end up costing you a lot more in the long run, so we’d strongly advise against this option.

For your car insurance policy, it doesn’t have to be a fancy policy with all the bells and whistles, but it must adhere to the state minimum requirements. ‘State minimum’ is essentially the absolute lowest coverage that your state has said it’s ok to have to be legal on the roads. For example, in Texas the state minimum requirements are 30/60/25. Find more information about what those numbers mean here.

If you don’t adhere to the minimum limits and choose to self-insure (aka: drive uninsured) then the consequences are pretty serious. Penalties vary from state to state, but the general consensus is not good. Fines start in the hundreds of dollars and can increase into the thousands. Plus, you could have your license suspended or even permanently revoked. In other words: you can’t drive again . . . ever. If you’re a repeat offender or cause serious damage that you can’t pay for, you may even face jail time. Well that’s a wake-up call.

What if I Hit Someone While Uninsured?

If you decide to take the risk and drive around uninsured, there is always a risk that you’ll get into an accident. If you were to have an accident and injured another driver or pedestrian or caused property damage, you would be solely responsible for paying for damages. That includes hospital bills, repairing any damage to building, cars, long-term medical care and even funeral expenses.

Tavss Fletcher Law Firm reports that the average claim of an accident with property damage is $7,500. For example, if you were to reverse into someone’s garage or side-swipe a car (with no bodily injuries) then you’d be looking at an out-of-pocket cost of about $7,500. You may think that’s not too bad if you have some savings, right? Well, that number gets pretty scary when you add in medical expenses.

If you hit someone who ends up with life-long injuries that costs an average of $61,600. If it’s serious enough to incur a fatality, you’re looking at a bill of $1.3 million. That $1,300 car insurance policy (US average) doesn’t seem so expensive now…

Where’s the Best Deal?

Finding the best deal on car insurance isn’t easy. Just trying to compare auto insurance prices can be tricky and very time consuming. Fortunately, it’s our purpose to help you get the best price by having you fill out a single form, after which we return multiple car insurance quotes from different auto insurance companies. Want to know how it works? Try it for yourself today.

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