What do I need auto insurance for?

FREE Auto Insurance Comparison

 Secured with SHA-256 Encryption

Compare quotes from the top auto insurance companies and save!

Things to Remember...

  • If people decide that they do not want to have the expense of an auto insurance policy, they will open themselves up to several penalties
  • If you have your license suspended for not having insurance, you will have to purchase an auto insurance to have you licenses and registrations reinstated
  • If the at-fault driver doesn’t have auto insurance, the two people injured can sue him or her for their medical bills and for the vehicle’s repair bills
  • Liability insurance only applies toward the injuries to people in the other vehicle and property damages to the other driver’s car, city property or buildings
  • Drivers may purchase collision coverage that will pay for the damages to their own vehicles even if they cause the accident

Auto insurance, for the most part, is a requirement. It makes it possible for people to pay the bills when they cause a collision. It also keeps them out of financial difficulties.

Use our FREE quote tool to find auto insurance rates today!

The States’ Requirements

united-states-of-america-map-1600x1600

All drivers have the potential to cause an accident. After these car collisions, the people who were injured or had their property destroyed will have the right to sue the person found at fault for payment of their bills.

The states have found a way to decrease the numbers of these lawsuits by requiring that people take steps to prepare to take financial responsibility when they cause a collision.

Demonstrating Financial Responsibility

The states give people a choice as to how they will take financial responsibility for the damages they cause. For example, they may:

  • File a surety bond with their county clerks
  • Offer their county’s comptroller a $55,000 deposit
  • Offer their county’s judge a lump sum of cash or a cashier’s check in the amount of $55,000
  • Self-insure if they are a business that has more than 25 vehicles
  • Obtain auto insurance

Not everyone has property they can place in a surety bond. Most people are also not in the financial position to offer the comptroller or the judge $55,000.

Since people generally only have their own vehicles and their family members’ vehicles to insure, they do not meet the 25 vehicle requirement to self-insure.

The most viable option for most people is to buy auto insurance. To find the best rates, enter your ZIP code into our FREE auto insurance comparison tool!

Penalties for Not Purchasing Auto Insurance

AdobeStock_13262673-1600x1600

If people decide that they do not want to have the expense of an auto insurance policy, they will open themselves up to several penalties.

People who are caught driving without auto insurance may have:

  • Their drivers’ licenses suspended
  • Their vehicles’ registrations suspended
  • To pay fines to have their licenses and registrations reinstated

A Second Offense

Drivers will be able to drive again after they purchase an auto insurance policy. If they decide to let this policy lapse and they are caught a second time driving without auto insurance, they will:

  • Have their vehicles impounded
  • Have to pay for each day the vehicles have been impounded

Purchasing Auto Insurance after Driving Without

dollarphotoclub_89915506-1600x1600

As stated above, drivers will have to purchase an auto insurance policy to have their licenses and registrations reinstated. Auto insurance companies determine how much they charge their clients based on how risky the clients are as drivers.

People who drive without auto insurance are placed into the category that represents one of the highest risks.

When drivers begin to seek quotes from auto insurance companies, the representatives at these companies will want to know when these people’s current auto insurance policies expire.

In this case, the auto insurance seeker must inform them that they do not currently have a policy. This fact will cause the insurance company to charge very high rates.

Aside from the fact that state laws require that people purchase auto insurance, the fact that auto insurance companies will raise drivers’ rates for letting their policies lapse is another very good reason to renew and maintain their policies.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

The Ability to Pay the Bills

If the fact that the states require it is not enough of a reason for people to purchase auto insurance, more selfish reasons may convince them that auto insurance is a good purchase choice for them.

After a car collision, one person will be determined to be the at-fault driver. This is the person who pays all of the bills.

If the vehicle a driver hits has two people inside who sustain injuries, they may have medical bills that will need to be paid. The collision would, most likely, cause damage to the other driver’s vehicle.

The repair bills will need to be paid, also, and the at-fault driver will be 100 percent responsible.

The Consequences of Driving without Auto Insurance

AdobeStock_40258869-1600x1600

If the at-fault driver doesn’t have auto insurance, the two people injured can sue him or her for their medical bills and for the vehicle’s repair bills.

Several unfortunate circumstances could result from this including:

  • Having to pay for a defense in court
  • Losing all the money in their bank accounts
  • Being forced to sell property
  • Having their wages garnished for several years

With Auto Insurance

People who follow the laws obtain liability coverage to pay for their legal defense, the medical bills, and the property bills.

States require that people purchase a specific amount of bodily injury liability coverage for one person, double that amount for bodily injury liability coverage for everyone hurt in the accident and a limited amount of coverage to pay for property damages.

In the example above, the at-fault driver would have an auto insurance coverage to pay for the medical expenses of the two people hurt in the accident. The property liability coverage would be used to pay for the vehicle’s repair bills.

The Difference between Liability and Optional Insurance

Liability insurance only applies toward the injuries to people in the other vehicle and property damages to the other driver’s car, city property or buildings.

The at-fault driver’s vehicle will also be damaged, and the at-fault driver may also experience some injuries. For these bills, the at-fault driver will need optional auto insurance.

Collision Coverage

adobestock_55935447-1600x1600

Drivers may purchase collision coverage that will pay for the damages to their own vehicles even if they cause the accident.

Without collision coverage, they would have to pay their repair bills on their own because they would not be able to file a claim with the other person’s auto insurance company.

No-Fault States

Some states operate on a no-fault system. This means that fault in a car collision will not be determined where bodily injuries are concerned.

In these states, drivers are required to purchase personal injury protection (PIP) insurance.

When people have an accident, they will file claims with their own auto insurance companies for their own PIP coverage. They are restricted in their ability to sue each other for pain and suffering, for example.

The Benefit of Comparing Auto Insurance Quotes

AdobeStock_38113283-1600x1600

People like to avoid purchasing auto insurance because they believe it is too expensive. These are people who are not comparing auto insurance quotes from all types of auto insurance companies.

Some companies are charging high rates, but other companies want to sell auto insurance policies to new clients, and they are offering very affordable rates at the moment.

People can find these auto insurance companies by going to the comparison page on this website. For no charge, they will receive several quotes for prices they can easily afford.

It will keep them from being in violation of the law and possibly losing everything they have financially. Find cheap auto insurance with our FREE comparison tool!

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

[0-9]
[0-9]