Why do I need auto insurance?

This is a common question often asked by many younger drivers just starting out on their journey down the road. Mostly the question is prompted by the expense of having to have auto insurance without truly understanding the immediate and future protection that it offers. Once a driver understands the reasons it is definitely easier to accept.

Reason number one is because as a member of the driving community you need to be responsible for any injuries or damage that you may cause to another’s property or being. This aspect of insurance is commonly referred to as liability coverage.

Reason number two is that if you’re driving an auto that is financed by a bank or some other financial institution they require that you protect their interest. This is called Comprehensive and Collision coverage. This insurance comes into play when you either have “bad luck” or you were just being a bad driver.

Reason number three is if someone else hits you and your car and they don’t have any insurance or may be under insured then you will probably want someone to pay you for your losses. Since the driver at fault has no insurance to pay you then you will want your insurance to pay. This concept is much more easier to grasp for many. This coverage is called “uninsured motorist” and “under insured motorist”.

These three reasons usually are the core of why people purchase car insurance in addition to the reality that having auto liability insurance is the law. Of course auto insurance laws vary from state to state but nonetheless the reasons set forth above are a good place to start.

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