Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Jun 14, 2019

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Here's what you need to know...

  • Driving without insurance is leaving yourself open to legal actions if you have an accident
  • Having insurance is the law
  • Insurance protects you and others from physical, legal, and financial loss

When shopping for insurance, one question you might ask is why you need to buy insurance in the first place.

There are several reasons for this. Insurance protects you and keeps your finances secure and keeps you safe from legal actions that might be brought against you.

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It’s the Law

The first and most important reason that you need insurance is that it’s the law. Aside from New Hampshire and Virginia, it is mandatory to carry insurance on your car in every state.

If you are caught in a routine traffic stop without carrying auto insurance, you can be fined hundreds of dollars, even for a first offense.

On a second offense, you may have to pay $1,000 or more, and you could even serve a prison term. A third offense often gets you a bench warrant and a prison term.

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Insurance Protects Others

 

Insurance is put in place for the purpose of protecting others from negligence due to careless driving, DUIs, or other offenses.

This means that, if you are found to be negligent in an accident, your insurance will pay for the injuries or property damages that you inflicted on the other party. This is valuable to you in many ways and protects others from the damage you might accidentally impose on them.

Insurance Protects You

Insurance does not only protect others. It also protects you. When you are driving, you may see many other drivers on the road that you encounter on your way.

If an accident is due to the negligence of someone else, it would not be fair for you to have to pay for the damages to your vehicle or to injuries you sustain as a result of their carelessness. Insurance recognizes this and forces the negligent party to pay in such cases.

Insurance Keeps You from Lawsuits

Insurance is a type of risk management. This is true because insurance allows you to drive and have a sense of security that you will be taken care of if something happens.

People could still sue you or try to collect in court, but in most cases, the courts have ruled that a person’s insurance is sufficient to count as a reward for damages, even in the case of wrongful death.

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The Case for Insurance

Let’s face it: no one is perfect. Everyone makes mistakes driving. If you make a mistake and you don’t have car insurance, you will have to pay for any damages you cause out-of-pocket. Insurance is a legal shield that helps you manage your financial, physical, and legal risk while on the road.

Should you get uninsured or uninsured insurance?

Liability and personal injury insurance are both required by most states, as is property damage insurance. In fact, the states all have specific amounts that they require you to carry to be in compliance with state insurance requirements. But what about uninsured and underinsured coverage?

There is no state requirement on these types of coverage, but it is highly advisable to choose these as an option.

Even though you carry the minimums required by your state, other drivers may not. To make sure your car would be repaired or that you would be covered financially in the event of an accident with an uninsured or underinsured motorist, you need this type of coverage.

How to Choose the Best Policy and Company

 

Before you select your insurance policy and company, consider these questions:

  • Does the policy cover my state requirements for liability, personal injury, and property damage?
  • Does the policy offer uninsured and underinsured motorist coverage?
  • How does the premium compare to other policies for my particular age bracket and other factors?
  • Are there discounts available for good driving, good student status, or other factors?
  • What other add-ons can I get from this company?

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Find Quotes

The best way to find the optimal coverage for your needs is to compare car insurance quotes from multiple companies. This way, you can consider price and coverage options all at once. If you have questions about car insurance coverage, speak to an insurance agent.

To find competitive car insurance rates that work with your budget, enter your zip code into the FREE tool below!