Basic Car Insurance: It Isn’t an Option, It’s Absolutely Necessary

There is one major reason for you to have insurance on your vehicle. It’s important enough for you to make absolutely sure you have the policy you need. This reason can be stated in one short phrase: It’s the law. Almost every state or province around the globe requires a car owner to carry the minimum insurance cover – liability policy or document that shows financial responsibility. Some states in the U.S. require the owner to post a bond showing ability to pay if there are expenses due to an accident.

When you drive your car without the basic insurance required, you could have your driver’s license suspended and a fine could be added to the punishment. This is exactly what you are trying to avoid by having the minimum coverage in place. Remember, laws applying to car insurance are set at state or regional level. If you have purchased your first vehicle, make sure you understand the coverage required. Then, take steps to put it in place. You can do this online when you purchase cheap car insurance from a trusted provider.

Save Money, Reduce Stress

Because millions of car accidents happen every year, in every country, it doesn’t make sense to take your expensive vehicle on the road without some type of insurance. Driving without insurance means you’re saying, “I have enough money and sufficient assets to cover the expenses if I get into an accident.” Before you risk being an uninsured driver, ask yourself if this is true. Can you live comfortably without the assets and money you have put aside?

Paying a reasonable amount for basic insurance is the smart thing to do. You’re paying a small amount now so you can save a lot more later on. Don’t be misled into thinking that an accident will simply be an inconvenience. One study shows that the average cost of damage to a car and surrounding property is more than $9,000 – for one accident. If there are injuries, the cost can be close to $100,000. Just have a basic liability policy, which is a perfect example of cheap car insurance, can protect your bank account and your other assets.

Insurance Limits

As you browse the website of a reliable, online insurance provider, be sure to look at your liability-coverage options. You’ll need to make at least an educated guess as to what the limits should be. This means, quite simply, buy a policy that will have enough coverage to protect you from financial disaster. If you can’t afford collision coverage to replace your vehicle, you should, at minimum, have liability insurance that will pay for damage to the other person’s car and for medical expenses.

When you start your car and leave for work, school, or to the grocery shop, consider the peace of mind you’ll have when you buy cheap car insurance that gives you the protection you need at an attractive price. There is such a “thing” as being insurance poor, paying more for premiums than you can afford and having more insurance than you really need. But you should never drive your car without some basic liability coverage in place.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.