Car Insurance

The Importance of Car Insurance to the Average Consumer

Most people who have any length of driving experience already understand the importance of having automotive insurance, especially if they have experienced an accident and have learned firsthand how expensive it is to either repair an automobile or replace it because of the extensive damage sustained in the accident. Most new drivers only see how much their automotive insurance costs them each month and wonder if it is possible to forego auto insurance.

Going without automotive insurance is illegal for most people. In order to on public roads, the individual driver must prove financial responsibility in the event that he or she is responsible in any altercation with the vehicle driven, whether the incident involves another motor vehicle, real or personal property or an individual. This form of insurance is called liability and pays for the medical bills of other people who may require medical attention and for the repair and/or replacement of property.

In addition to liability insurance, if the automobile is a rental vehicle or the owner owes money on the vehicle, the driver will also need comprehension and collision coverage. Collision coverage covers damages to your vehicle if you have an accident with another vehicle or physical property, such as a utility pole, garage, or the side of your house. Comprehensive coverage covers damages to your vehicle for all other reasons, whether a storm drops a tree on it, you hit a deer in the road, vandalism, theft, fire, etc.

Generally speaking, if you do not owe money on your vehicle and it is old and not worth very much, collision and comprehensive coverage may cost more than the potential benefits of the coverage. However, one type of insurance that most people who do not have full coverage should consider is for uninsured and under-insured motorists property damage. This means that if you are in an accident where fault is found with another driver who is not adequately insured, your insurance company will pay for your loss, less whatever deductible that you have, and will pursue the driver who is at fault.

Being financially responsible is the primary reason for obtaining and keeping automotive insurance. However, many people who do not understand the consequences of their involvement in a serious accident with an automobile where they are at fault and for whatever reason did not have coverage. In all instances, the individual who is not financially responsible and is at fault in an automotive accident automatically loses their driver’s license. People losing their license this way cannot have their driving privileges reinstated until they pay for the damages to other property in the accident and any medical bills for anyone/everyone involved in the accident who sustained injuries in the accident. In addition, they must also prove that they have the required coverage before reinstatement of their driving privileges.

If a driver is stopped by law enforcement for any reason, the officer will require proof that the driver has insurance. If the officer can prove that the driver does not have automobile insurance, he or she may impound the vehicle, depending upon the state of the occurrence. In addition, many states may mandate that the driver cannot continue to drive if they do not have insurance. In some instances, the driver may face incarceration. At the very least, the individual who receives a citation for no automotive insurance may have to pay some expensive fines and court costs when guilt is determined in court. In addition, the individual may have his or her driving privileges suspended or revoked.

When an individual is attempting to obtain insurance after not having insurance when he or she should have, the insurance company may charge a higher premium as most insurers consider such irresponsible people a higher risk. The individual is usually better off financially by maintaining a regular automotive insurance policy. An individual may inquire with the insurance company what will help with causing the policy premiums to decrease. The most common is a good driving record and remaining accident free. One may also have to shop around and compare insurance coverage and premiums with other companies.