Car insurance is compulsory for drivers across the U.S. except for those in New Hampshire. There, the state is okay with drivers foregoing insurance only if they can show financial responsibility and can cover accident costs if they are liable. Buying a policy is surely not cheap, so why is car insurance necessary? Because the right car insurance policy can save you a significant amount of money and worry in the event of an accident.
To have your vehicle legally registered and drive it, you may possibly have to show that you've got at least the minimum limits as mandated by your state's laws. If your car is new and the purchase is being financed by the bank, buying additional coverage like collision and comprehensive may be needed.
There are several reasons why having car insurance is essential. For one, you can be compensated by the insurance company in the event of an accident caused by someone else's negligence. As the victim, you may endure injuries and physical damage that ought to be compensated. If no one has insurance, you would possibly need to file a lawsuit against the negligent individual. Under this condition, compensation isn't guaranteed, and legal fees would have to be paid by you.
Even if the ruling is favorable to you, additional steps to enact the judgment and collect your money would have to be taken. The wait for the defendant to have any money to pay you � if payment ever arrives � could take years. Car insurance can ensure you receive payment instantly.
Another reason you shouldn't avoid car insurance is that you may want to compensate someone else for your negligence. Without insurance, the other party could procure a judgment against you. It could negatively impact your credit rating.
Your assets can also be protected by auto insurance. If a business or property is owned by you, you want to safeguard them from a court judgment. When you have assets at stake, maintaining higher liability limits may be wise. With insurance, a claim can be pursued by another party through your insurance to satisfy the claim.
When you're ready to buy car insurance, don't forget that the right policy can help safeguard you, your loved ones, as well as other drivers on the road. If you face an accident, you can be less concerned, knowing the coverage you have will take care of the damage.