Auto insurance coverage is not a matter of choice. It is a policy that every person who owns a car should have. Every state in the United States has made it mandatory for all drivers and each state has a list of minimum requirements that should be met by all policies being issued in that particular region. Though the policy is compulsory in all the 52 states, the requirements in one state are not the same as the requirements in another state. In addition to driving without coverage, traveling with a policy that does not meet the minimum legal requirements of the state can lead to hefty fines or time in prison.
Auto insurance is an agreement between auto insurance providers and consumers who drive cars. As per the terms of the this agreement, the customer agrees to pay a particular amount as premium each year in return for the assurance of the provider to pay for the expenses in case the car is damaged during an accident. The terms and conditions of the policy vary based on the type of coverage you opt for. However, even the most basic coverage stands by this assurance.
This type of policy not just benefits you, but also the others on the road. In case of an accident, there are chances of other people getting hurt and property getting damaged. Coverage such as comprehensive coverage or collision coverage pay out for the damage caused to others and to the property, thereby reducing your financial burden. There are auto insurance policies that do offer coverage in case of natural calamities and even theft.
Most of the people take the risk of driving their car without relevant insurance coverage because they do not want to spend money on the insurance premiums. They don’t realize that they will have to pay even more money in case they are involved in an accident or are found to be driving without a valid insurance policy.
You cannot overlook the need for auto insurance even if your finances are being stretched to limit. This policy is not just for your safety, but also for the safety of other driving on the road. You can opt for the basic liability coverage in case you cannot afford the high cost of other types of coverage. But, if your car is not very old and you have opted just for the basic coverage, be prepared to shell out money from your pocket in case of any mishaps.
