One: It's mandatory. Every state in the United States requires some form of auto insurance. This means that if you have a driver's license, it's assumed that you have at least the state's minimum limits for auto insurance. If you are caught without any insurance at all, you will pay a fine, file proofs of financial responsibility and pay higher premiums.
Two: Auto insurance is a great way to protect your assets. If you fail to get a car insurance now, how can you be assured that, in the event that you get involved in an accident, you have your bases covered? Who will pay for the injuries and property damage?
Most car insurance companies can also provide a legal defense if another party throws a lawsuit against you. That said, coverage are limited to the terms and conditions contain in the policy which is why it is best to purchase enough coverage to cover the costs of damage your car inflicted to the other vehicle or property.
Three: Auto insurance can also cover results of serious accidents such as other people's bodily damages or even death for which you are responsible. Other claim for bodily injuries includes medical bills, pain and suffering, loss of income, etc.
Four: Auto insurance allows family members to be treated and admitted to emergency rooms in case of accidents even if you only signed up for liability and personal injury protection.
Five: Remember Katrina? Comprehensive insurance can also cover vast car damages such as fire, flood, damaged by animals or even if it got stolen! This type of coverage pays up the cost needed to fix your vehicle less the deductible that you have chosen. Here's a tip, in order to maintain low premiums, it is best to choose as high deductibles as you are comfortable paying out of your pocket.
