Why is car insurance so important and do I really need it? YES! Everyone that drives, needs automobile insurance. In fact, it's so essential to protect yourself and others around you that every state in the United States has laws about the minimum insurance limits you must purchase. Each state has different minimum automobile insurance limits required, so make sure to check with your local Department of Motor Vehicles if you are moving, a new driver, or new to the state. Automobile insurance has different optional parts to the policy you can purchase depending on level of coverage you choose. The policy can be tailored to your needs, with liability limits typically available up to $1,000,000 and coverage for damage to your car (Comprehensive and Collision coverage), Road Trouble, and Rental Reimbursement. See additional blogs for more on Comprehensive and Collision Coverage.
So besides being legally required to purchase automobile insurance why should you have it? To protect yourself, your family, and other people around you! Automobile Liability Insurance is designed to compensate another party (person or business) if you made a mistake and caused an accident where someone is injured or property has been damaged AND you are legally liable (at fault). Have you ever slipped on the ice and slid into another car on the interstate? What if that person had serious injuries and needed to take a helicopter ride to the hospital? How much do you think medical bills would cost? It could easily be hundreds of thousands of dollars. According to the National Highway Traffic Safety Administration (NHTSA), in 2013 the average auto liability claim payment for bodily injury was $15,443. Also in 2013, 2.31 million people were injured in an automobile accident. You need insurance to cover medical bills and damage to the other party's vehicle or property. If you have NO INSURANCE OR ARE UNDER INSURED, meaning the damage you caused is more than the liability limits you purchased, the Injured Party can take you to court and sue you for compensation. If you own a home, have a good paying job, or other assets, the court can make you pay for damages out of your own pocket. It is extremely important to purchase enough automobile liability insurance so you are protected if an accident happens.