Auto Insurance is a Necessity in America
Most US states require automobile owners to have auto insurance. New Hampshire is currently the only state that doesn’t require auto insurance. Not having the insurance will save you some money, but is the savings worth it? What happens if you’re in an accident and face huge out of pocket expenses? Automobile insurance acts as a financial safety net to protect you and/or other drivers, pedestrians, bicyclists and others from automobile accidents.
Who Needs Auto Insurance?
Anyone who owns an automobile should have auto insurance. Even if you don't own a car, your name should be included on the policy for any car you drive. If it’s not, and you get into an accident, then the insurance company might not cover the accident.
How it Works
File a claim with the insurance company following your accident. If the accident is a type of covered expense, then the insurance company provides funds to help pay for damages. In some cases, the insurance company might pay the money directly to a repair shop. With liability insurance, it will pay for damage to other cars or property in an accident that you cause. Other types of insurance will cover your car and injuries you and your passengers sustain.
- Liability insurance – covers damages and injuries to other drivers, and is the minimum coverage required in nearly all US states.
- Collision insurance – a type of insurance that covers damages to your car when you’re hit by another driver.
- Comprehensive coverage – pays for damage to your car, no matter how the damage occurred. If you have a car loan, then the lender will likely require collision and comprehensive coverage.
You can also get uninsured motorist coverage, which pays for your damages if the other driver is uninsured, and personal injury protections, which pays for medical costs for you and your passengers.
Auto insurance is important because auto accidents are common. You never know when you’ll need to rely on insurance. In short, you need it. And if you’re in America, it’s probably illegal for you to drive without insurance. An accident without insurance could be expensive, and if you cause injuries, then you could be sued. No matter how you look at it, having auto insurance is a good idea.