Whether you’re wondering about your insurance policy renewal or curious about why you even need it in the first place, it’s always good to know what you are paying for.
Besides being mandated by law in almost every state, car insurance is an investment that protects you from financial harm and safeguards your assets.
Read on to find out why every driver should have car insurance.
It’s Required by Law
One of the main reasons every driver should have car insurance is that it is mandated by law. Car insurance is required by law because it protects your finances in the event of an accident – whether you injure another person or damage someone else’s property. Even the cheapest car insurance Georgia will cover the minimum legal requirement – your liability.
If you’re caught driving without car insurance, you could receive a hefty fine or even get jail time. In Georgia, the first time you’re caught driving without car insurance results in a 60-day suspension of your vehicle registration and driver’s license – and you may also get 12 months of jail (depending on the reason you were pulled over).
Second-time offenders can expect a 90-day suspension of their vehicle registration and driver’s license; they will incur an $85 fine and serve jail time. If someone is caught driving without insurance more than twice, they will probably go to jail and get their driver’s license permanently revoked.
Compensation for Accidents You Cause
State laws mandate car insurance for the same reason they mandate safety belts: to protect drivers.
For instance, if you are involved in an accident and it was your fault, your insurance policy will cover any damage you caused to other drivers and property.
Suppose you didn’t have car insurance in this scenario. In that case, the other party and their passengers could hire a lawyer to sue you for the damage to their vehicle, their medical expenses, and all their lost income. These expenses could quickly come to more than $100,000 – and that’s without even factoring in the cost of the damage to your own car or your medical bills for your injuries.
Not having car insurance isn’t just illegal; having a car accident without insurance can ruin you financially.
Compensation for Accidents Others Cause
If you’re involved in an accident that’s not your fault, you’ll be happy that the other party has insurance.
The other driver will have liability coverage – meaning that their insurance policy will cover their liability if they cause an accident. The at-fault driver is liable for your medical bills if you are injured (bodily injury liability) and the damages to your vehicle (property liability coverage).
While almost every state mandates liability coverage, they do not require collision or comprehension coverage. That means that basic insurance plans will only pay for the third party’s car and injuries. That’s why it’s a good idea to make sure you have comprehensive coverage.
Get Your Car Repaired No Matter Who Caused the Accident
While every driver must have liability coverage by law, it’s a good idea to purchase collision or comprehensive coverage. So, why do you need it?
Suppose you have a car accident and your vehicle is seriously damaged or written off entirely. Would you be able to cover the repairs or replacement out-of-pocket? Or, if your vehicle was damaged or lost due to a natural disaster, vandalism, or theft, would you be able to cover the costs yourself?
If not, you probably need collision or comprehensive coverage to protect your finances. And if you rely on your car to earn an income, you definitely need comprehensive coverage.