It’s a question everyone asks when they first start driving. Is it really necessary to have car insurance? If you live in the United States, unfortunately the answer is yes. Automobile liability insurance or proof of financial responsibility is required in all 50 states. However each state each state has its own rules on the minimum requirements to purchase car insurance.
There are also other requirements, such as a minimum purchase in liability insurance and comprehensive and collision coverage if you are renting a car. There is often a misconception that all that car insurance does is protect you, as a driver and your car. However, there’s more to that. Car insurance also protects other motorists, pedestrians, and private or public property. If in any case, you cause damage to people or property, they can then claim costs from your insurer or your insurance company.
It would not be just if someone paid for the damage of his car when you’re the one who crashed into it. The penalties for driving without car insurance varies per state but often involves a fine, license and registration suspension or revocation and in some states, depending on the situation, you can get significant jail time for driving without car insurance,
Auto insurance is expensive when start insuring you own car too. Insuring your car comes in two forms of coverage. One is known as Third Party, which covers you if your car is vandalized or broken. The other type of cover is called Comprehensive, which is the most common type of car insurance. It is common because if gives you complete cover for you motor vehicle. So even if you cause an accident and end up with a heavily damaged car, your insurance company wills till pay for the repairs to your vehicle as well as the third party’s.
Car insurance is mostly purchased through car insurance policy. Although it is sometimes quite expensive, it is much more economical and provides great coverage on a number of different traffic related incidents. An insurance company has coverage limits, that is agree upon by you and your insurance company. Then you pay them a premium annually or depending on your agreement of terms. So if ever you do get in an accident, they will cover all the damages and repairs. It’s not a bad deal since most accidents are very expensive and an average man can ill afford to shell out a large amount of money quickly.