Accidents can happen at any time. According to the National Highway Traffic Safety Administration (NHTSA), there are more than 6 million traffic accidents reported each year in the U.S. Even if you are a safe driver, you can never be 100% sure that the other drivers on the road are as cautious as you are. If you get into an accident and do not have sufficient insurance, the consequences can be devastating. Here are the reasons why you need car insurance.
Why You Need Car Insurance: Top 6 Reasons
- It's required by law
Most states mandate that all registered vehicles must be covered with an insurance policy. For instance, the State of California requires that you carry a minimum of $15,000 per person and $30,000 per accident of Bodily Injury Liability coverage, as well as $5,000 in Property Damage Liability coverage. If the police pull you over and you are unable to provide proof of insurance in California, you run the risk of having your vehicle impounded and your license suspended. You may also be fined up to $500 dollars for each offense.
- It protects you from uninsured motorists
If you are hit by someone who is uninsured and does not have the financial resources to compensate you for your damages and/or medical bills, you will have little choice but to pay out of pocket if you do not have the necessary insurance. Uninsured Motorist Coverage is not required by most states, but it can be an invaluable resource if you are injured in an accident by an uninsured driver. Otherwise, you would likely have to bring a lawsuit against the other driver, which is an expensive and time-consuming process with no guarantee that you will be compensated in the end.
- It protects you if you are at fault
If you are found to be at fault for an accident and you don’t have insurance, the other driver could take you to court. In this case you could be responsible for paying any medical bills and property damages resulting from the crash. This could leave you with a lot of debt and potentially damage your credit. Having car insurance allows you to get on with your life after an accident without having to worry about how you are going to afford the damages.
- It saves you money in the long run
Even though purchasing coverage above the required minimum limits might seem like an unnecessary expense, it can save you a lot of money in the long run. Even a minor car accident can cause thousands of dollars’ worth of damage to your vehicle or to someone else’s. If you are injured in an accident and need medical attention, that number can quickly balloon. Without insurance, you could be left paying off medical debts for years. With the right auto insurance coverage, you will pay a small amount extra per month for some major peace of mind.
- It can help supplement your health insurance
If your health insurance plan has a high deductible, or you have no health coverage at all, auto insurance can be a vital resource for paying any medical bills resulting from an accident. Medical Payments coverage is an optional add-on to your auto insurance policy in some states, but mandatory in others. With this extra coverage, your medical bills and the medical bills of your passengers can be covered regardless of whether you were at fault in an accident. Even if you do have a robust health insurance plan, purchasing just a small amount of medical payments coverage can still help by covering your medical insurance deductible.
- It saves you time and headaches
The post-accident process can be confusing and overwhelming. If you have car insurance, your insurance company will guide you through the claims process and handle the majority of the inconvenient details. Your insurance company will try to work with the other driver's insurer, help you find a good repair shop, and work to get your claim settled quickly and fairly. Depending on your coverage, your insurance company will even cover rental cars and roadside assistance so that you can drive away knowing everything will be taken care of.
If you’re still asking yourself “Do I need car insurance?” the short answer is “yes.” Nobody wants to think about getting into a car accident, but the fact of the matter is that accidents happen. If an accident happens to you, you’ll be happy that you are protected by the safety net of a robust auto insurance policy. If you want to know more about why you need car insurance contact us to speak with an insurance expert who can fill you in on the importance of auto insurance and the optional coverages. Do you know whether or not you are properly covered in the event of an accident? Get a free quote today to see how Wawanesa Insurance can help.
The above content is for informational purposes only and is not a direct representation of coverages offered by Wawanesa or its policies. The information does not refer to any specific contract of insurance and does not modify any definitions, provisions, exclusions or limitations expressly stated in any contracts of insurance. All references within the above content are illustrative and may not apply to your situation. The terms and conditions of the actual insurance policy or policies involved in a claim are determinative as to whether an accident or other loss is covered. To understand the coverage under your current policy, please log into the account management platform to review your policy or contact an agent directly.