Having some sort of liability insurance on your car is mandatory in most states. Many people do not understand why they are required to sign up for insurance. The truth is insurance can save you a lot of money and headaches in the long run by protecting you and your family’s financial assets.
Not only does having car insurance work as a safety net just in case you have an accident in the future, but it is also your responsibility to ensure that your car is insured. Not doing so can result in additional fines being issued during what should have been a minor traffic stop.
How Does My Car Insurance Actually Help Me?
Besides issuing fines, some states will impound your vehicle or suspend your license for driving without insurance. This is why it is important to always have insurance on any vehicle before taking it out on the road. Below we will go over a few other ways many people benefit from having a reliable insurance company.
- Helps cover medical expenses related to a car accident: Car accidents can bring many unexpected expenses. Some of the biggest expenses that come with a car accident are medical bills due to injuries. Depending on the severity of your injuries, your medical bills can range from a couple hundred dollars to thousands of dollars. Most people are not aware of the fact that more than 60% of Americans lose their life savings to medical debt. When looking for a car insurance agency, make sure you find one with reputable companies. These policies should include a clause saying the insurance company will be responsible for paying any hospital bills or other medical expenses that might come up due to a motor vehicle accident.
- Helps avoid unnecessary fines and additional premium surcharges: As we mentioned earlier, most states require you to have liability insurance on your vehicle by law. There are several consequences that you might have to face if you break this law. Most of the time you will not get stopped for lack of insurance. However, in states like Maine, if you get pulled over and you can not give the officer proof of insurance, you might be required to pay fines up to $500. Not only this, but you could also lose your license and car registration. Additionally, should you choose to drive without insurance, it could potentially increase your insurance surcharges once you do get car insurance. A car insurance surcharge is a temporary increase on the monthly premium you pay your car insurance as a way to mitigate increased risk. Fortunately, surcharges are something you can easily evade by avoiding risky driving behavior like driving without insurance in the first place.
- Protects you from having to pay legal damages: If you have ever been in a car accident and did not have insurance, you are aware of the legal defense fees, court costs, and damages that you might be required to pay. If you were at fault, this could easily add up to thousands of dollars when you also factor in injuries. Having to pay these costs out of pocket can put you in financial debt. This is why it is a smart decision to transfer all the risk to your local insurance company.
There are over 5,960 insurance companies in the United States alone and these companies offer a lot of protection from possible financial devastation. Always do your research and read the fine print of a policy before buying it. Insurance is one of those things that although you might not always get to put it to use, it is always better to have it and not need it than to need it and not have it.