Why the Need for Auto Insurance?

OK, so you’ve passed your driving test – the easy part; and you’ve seen your dream car – or should I say, one that you can afford to buy! What next? There is the little item of auto insurance to think about. In fact it would be better to check this before paying out any money for a car otherwise the cost may be higher than what the car is worth!!

Most people will need to deal with an auto insurance company at some time in their lives. Whilst you may not drive now, or live in a city where driving is not a necessity, life has a habit of changing and turning things on their heads where insurance for your motor becomes a must.

So why this need for auto insurance? In a nutshell, it’s the law in most states unless you live in Tennessee. Failure to carry the minimum amount of auto liability insurance, or, in the case of Tennessee financial responsibility is in the vehicle at a all times, you may find yourself with a hefty fine, loss of your driving license and even jail time. Apart from the legal aspect of the need, auto insurance is sound financial planning. Something that can save you from devastating financial ruin.

Well, following what can be a large capital outlay, you may wish to protect it as much as possible against all kinds of uncertainties that may cause some sort of bodily damage to the vehicle. In other words, obtaining auto insurance will give you protection against loss should you be involved in an accident by safeguarding the investment in your car. Pay for those hefty medical bills if you are unfortunate to be involved in an accident. Protect you from costly damage claims of an accident-related lawsuit, and also non-insured and under insured motorists.

So to recap:-

1)      Auto insurance is the law – and you are fully aware of the consequences of ignoring this law.

2)      Auto insurance can save you from financial meltdown or possibly bankruptcy – consider the costs of even a short stay in a hospital without surgeries and advanced procedures. These can run into the tens of thousands of dollars.

3)      It is necessary to protect your capital outlay in the purchase of the vehicle, and for some, the repayments of the loan taken out to acquire that vehicle.

Auto insurance is a must-have wherever you live, and, dare I say; if you can’t afford it Keep off the Road!