Are You Covered? The Importance of Car Insurance

In 2020 alone, an estimated 4.8 million people in the US sustained motor vehicle crash injuries. All these accidents occurred despite Americans driving less that year. That’s right: US motorists drove 13% fewer miles in 2020 than they did in 2019.

All those figures further emphasize the importance of car insurance. After all, an auto policy protects car owners, drivers, passengers, and other road users.

To that end, we created this guide detailing how imperative it is to have auto insurance. Read on to discover why you should never go without it.

Coverage for Damages and Losses Caused By a Road Accident

Motor vehicle crash injuries cost the US an estimated $463 billion in 2019 alone. That includes medical costs, vehicle damages, and wage losses, to name a few.

Without auto insurance, those to blame for crashes would have to pay for all those costs. That’s because car insurance protects policyholders against financial losses in cases of accidents. So, with it, you get coverage for property damage or losses, liability, and medical costs.

It Satisfies Proof of Financial Responsibility Laws

All 50 US states implement some form of financial responsibility laws. These laws require motorists to prove that they can pay for damages they cause in a car accident.

Car insurance provides car owners and drivers a way to satisfy those laws. For starters, even the most basic policy provides bodily injury and liability insurance. That’s why auto insurance has become the standard for meeting those regulations.

New Hampshire and Virginia are the only states without compulsory car insurance laws. However, both still enforce financial responsibility laws.

Safeguards Your Family Members

Auto insurance provides coverage for your family members listed in the policy. This typically includes your spouse and kids, but you can also add, say, a housemate to your policy. So long as they live at the same address, it’s up to you to let them use your car and give them insurance coverage.

Protects Other Road Users

Auto insurance also helps ensure at-fault drivers can pay for the costs of their actions. For example, bodily injury liability covers a policyholder who injures another person. On the other hand, property damage liability pays for the cost to fix another person’s car.

However, do note that some drivers contest claims or lawsuits filed against them. Some may even make allegations saying that the other driver was purely at fault.

If you encounter such a motorist, it’s a good idea to hire a car accident attorney, even if you have insurance. Your lawyer will help disprove the other driver’s false claims against you. Moreover, your legal counsel will ensure you receive just compensation for your losses.

Protection for Motor Vehicle Theft

Motor vehicle thefts are rampant in the US, with 721,885 cases having occurred in 2019. While that’s a decrease of 4% from the previous year, such crimes still led to a total loss of $6.4 billion.

Without car insurance coverage, victims won’t have a way to recover their losses. By contrast, an auto policy can safeguard the insured against motor vehicle theft. Comprehensive coverage is the type of auto insurance that provides theft protection.

Car Insurance Is a Necessity and Not a Luxury

As you can see, car insurance is something you should always carry because it’s the law in most states. More than that, it provides financial and liability coverage in case you get involved in a crash. So, even if you live in NH or VA, an auto policy is still one insurance you should never go without.

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