Why You Need Insurance If You Drive a Car

Why You Need Insurance If You Drive a Car
By John Huggins

Every person that owns a car needs to be legally insured. Period. It is amazing the number of people who don't have auto insurance, and driving without auto insurance is just asking for trouble. Insurance is viewed by many as a "necessary evil" but as soon as something happens to a vehicle that warrants an insurance claim, all of the premiums paid suddenly become worth it. Not having insurance, however, can end up costing a driver a lot in the long run.

Auto insurance is required for all drivers and for good reason. Its covers the driver in the event of an accident, theft, or any other incident involving the vehicle. At the minimum, drivers need to have bodily and property damage liability insurance, which covers damages caused to other drivers and their vehicles. It is also recommended that a driver have collision and comprehensive insurance, especially if the vehicle is financed. Collision and comprehensive insurance paired together cover damages to the owner's vehicle in the event of an incident. It is a good idea to have collision and comprehensive because without them, if something happens to a person's only vehicle, it is up to them to find suitable transportation, and insurance will not help at all.

Having insurance also has a few perks that not a lot of people know about. One of the often overlooked features is that of tow and rental coverage. If a vehicle is in an accident and an insured motorist has rental coverage, a rental car will be provided for the duration of the vehicle's repair. Also, tow coverage can cover the towing of a motorist's vehicle not even if it's in an accident, but even if it breaks down and the driver needs to get it to a shop or to his or her house.

Why should a driver have car insurance? Well, first, it is the law. Not only is it illegal to drive without insurance, it is also asking for trouble. If a police officer pulls an uninsured driver over, the driver can face severe penalties, up to and including the loss of a driver's license, and if the uninsured driver happens to have an accident, he or she can be completely liable for all damages. Most people don't have enough cash on hand to simply buy another person a car or pay for emergency surgery, so insurance definitely has its place.

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