While auto insurance is an important aspect of driving, for many new drivers car insurance is more of a pain than a benefit because of high premiums they have to pay. The state in which you drive in and live in is requiring you to carry a minimum amount of car insurance. You need to understand that in many states, if you are pulled over by local authorities without insurance may lead to the immediate impounding of your vehicle. In some states, driving without auto insurance is illegal, and police authorities will not allow you to continue driving without it. In addition to your car being impounded, you may also be charged heavy fines and fees by the courts, and the troubles or having your driver’s license suspended or revoked for a specific amount of time.
Car insurance provides you protection from personal liability that could lead to financial hardship and utilization of all of your resources should you be in an accident. If you are involved in an accident, and you are found to be at fault, you can be held personally responsible for the costs of hospital bills if the other person is injured, and if the person is killed, major monetary awards must also be given to the bereaved family. If you don’t have car insurance, it can mean selling your stocks and bonds, your home or other assets just to pay the costs and prevent being jailed. This also mean having to pay your loans and future payments because of all of your liabilities and damages, spending your life paying them off. On the other hand, if someone hits you and the other driver and you don’t have a car insurance, then you will be faced with your own medical payments, as well as the legal fees if you sue the other person.
Having a car insurance will really help you in shouldering the costs of liabilities, damages, and other expenses you may encounter because of an accident. Accidents happen everywhere no matter how you apply safety measures, and car repairs are so expensive, but having a car insurance will help in paying damages to your property caused by flood, fire, hail, or theft. Instead of you paying out of your pocket to repair or replace a vehicle you hit, a car insurance company can shoulder it for you. It makes sense and practical paying high premiums for car insurance to obtain the best coverage possible because only a single car accident can force you into bankruptcy court if you’re not protected by car insurance.Smart Ideas: Insurance Revisited