Purchasing a new car can be a large investment today. Many people feel that what you pay for a new car, you could almost put a student through college. When you’re paying that much for a car, you’re going to want to make sure that it’s adequately insured.
Minimum Insurance Requirements
Many states require car owners to carry a minimum amount of liability insurance. Currently, every state requires that licensed drivers carry liability insurance on their automobiles. Many states also require you to have comprehensive or collision insurance if your car is not fully paid for. If your state doesn’t require it, your lending institution usually will.
When you borrow money to buy a car, a bank wants to know that if your car were totally destroyed in an accident, they’d still get their money. If your car is destroyed and worth nothing, you don’t have a lot of incentive to make the loan payments! Even if the law doesn’t require you to have auto insurance, many reasons exist why it’s just a good idea to have auto insurance.
Accidents Do Occur
Regardless of how careful a driver you may feel you are, everyone has an accident at some time in their life. Whether it’s sliding into ditch on an icy road, having your car damaged by a flying object or a deer bumping into it, many risk factors can cause you to need auto insurance. This is why they’re called accidents. For the small price you pay for auto insurance, it’ll be more than worth it if your car is damaged. Whether you’ve borrowed money to buy your car or have spent months or years saving for it, you want to know that if your car becomes damaged, you have adequate auto insurance to have it fixed or replaced.
We Live In The Age Of Lawsuits
Liability is another reason why it’s so important to have auto insurance. As much as we hate to admit this, we are in a day and age of lawsuits. Few people are involved in accidents that don’t turn around and sue the other driver or their insurance company. Your insurance will give you peace of mind, knowing that if this type event should occur, you’re protected. There are many ways we can cut back on expenses to save money. Don’t let eliminating auto insurance be one of them!