Why is auto insurance important?


It is commonly said ‘hope for the best but be prepared for the worst’. Life is all about being on an alert and knowing what is good from bad. One may take all necessary precautions and may be careful while carrying out any task but still can never be sure about what fate has in store. Car accidents are something of that sort. There are good drivers and bad. One may feel it is not necessary to opt for automobile insurance if one is a careful and alert driver. He or she may feel that since they drive well they are not vulnerable to accidents and hence they do not require auto insurance. This is however a wrong way to look at things, all though one may drive safely but one can never be sure of the driving skills of the other drivers who ply their cars on the roads. An accident may take place even due to the mistake of other drivers.

One of the most important reasons for the necessity of an automobile insurance is that financial security is maintained in situations of emergency. There may be times when in an accident the damage to the car may not be the only major concern. Bodily harm to the car’s driver or passengers may also be a cause of worry, in such a case having secured the car under an insurance policy takes off a major burden from the car owner’s mind. It becomes easier to concentrate on the needs of the injured if there is no other concern to be taken care of.

The government understands and empathises with the problems that a victim or victims of vehicular accidents often face. The system knows that people have to face major financial issues if they have been through an accident. It is not cheap to have a vehicle repaired even if the damage is as small as a scratch, it costs a fortune and people have to shell out the money out of their own pockets irrespective of whatever their financial condition may be. In order to save the people from this fate the government has made it mandatory for vehicles to be covered under adequate insurance failing which the car owner may have to face a penalty. The government finds it necessary to make this a law so as to protect the people.