Auto Insurance is legally required in most states of US. Any person who drives a car must have basic liability coverage as mandated by the state. State’s minimum liability and property damage coverages are two of the most important coverages you need to be sure to have in order to drive legally. In case if you don’t have it, you risk losing your driver’s license. Besides, you will have to pay fines for not having Auto Insurance. You also risk having other various penalties, if you get in an accident without any liability coverage.
Auto Insurance is also mandatory while you’re leasing a car. The lender may require you to purchase collision and comprehensive coverage, as this serves as protection of their investment.
Auto Insurance Can Protect Your Finances
However, besides the legal point of view, Auto Insurance helps to protect your finances. In case if you cause an accident, all the costs such as legal fees, injured person’s medical expenses, may most probably be on you. Car Insurance can help you with all these payments since, without it, you will likely be entirely responsible for all expenses.
It is more than coverage for car accidents
What is more, Auto Insurance covers much more than just expenses caused by car accidents. In the case when certain acts of nature occur such as storm, or maybe when a tree has fallen on a car, and your car has been damaged because of that, it would cost too much money to fix these things out of your pocket. In this case, Car Insurance can come to help you, as in some situations liability coverage can also cover the repair expenses.
Auto Insurance can protect you against lawsuits
If you have PLPD (Personal Liability and Property Damage) car insurance, it will protect you against lawsuits. In case you are at-fault in an accident, the injured party will want compensation. Without Auto Insurance, you will be financially responsible and potentially forced to pay for all the expense on your own. Taking into consideration the fact that most people cannot afford to self-insure, most states require all drivers to purchase PLPD.