Required Auto InsuranceIn this economy everyone is trying to save money.

You can save money on auto insurance by shopping for the cheapest auto insurance but you can’t save money by eliminating auto insurance.

Even if you don’t want to spend the money, in most states across the country, if you own a car, the law requires you to buy car insurance coverage on that car.

The law also requires that car insurance coverage to include liability coverage.    So even if you are trying to save money by shopping for the cheapest auto insurance, liability car insurance is still a required coverage.

Here’s Why Auto Insurance Is Required

Personal Responsibility

  • One of the reasons that liability is required by law is because of personal responsibility.
  • If car owners know that they are responsible or liable for their actions when they are behind the wheel of a car, they may be more careful.
  • More careful drivers will keep insurance costs down.
  • Insurance companies will not pay out as much in claims if people are more responsible drivers.

Personal Pride

  • Other car insurance coverages included within your policy include comprehensive and collision coverage.
  • Comp and collision coverages will keep your car looking nice.
  • Those coverages pay to put your car back together.
  • Car repairs can be expensive.
  • Without car insurance who would pay to repair your car?

For Your Own Personal Body

  • The medical coverage part of your insurance policy will help with bodily injuries that you may incur as the result of a car accident.
  • If you are injured in a car accident you do want to get better, don’t you?
  • Medical expenses can get extremely expensive.
  • Without car insurance coverage, how would you pay for medical expenses?

Car Loans, Car Leases

  • If you have a car loan or lease your car, the finance company owns that car, not you.
  • If that car is damaged from an accident or occurrence, the finance company wants it put back into the same condition that it was before the occurrence.
  • The finance company will require comprehensive and collision coverages.
  • Comprehensive and collision coverages will repair the car as the result of a car accident, windshield crack, paint damage if the car is keyed or if there is a collision with a deer or other animal.
  • If your vehicle is damaged from an accident or occurrence and you do not have comprehensive or collision coverage – you will have to pay for the damages out of your own pocket.

Having auto insurance is the law, like it or not.   If you own a car and are driving it without auto insurance, you are breaking the law.   Do the right thing, buy even the cheapest auto insurance to make sure you are obeying the law.