Things to Understand About Car Insurance

No one likes paying for car insurance, but it's necessary. If you're in an accident and don't have insurance, you could be on the hook for thousands of dollars in damages. Your license can also be suspended if you do not have car insurance. For example, if you do not have car insurance in Ohio, you can be suspended from driving for two years.

Why is car insurance important?

Car insurance is important because it protects you financially in the event of an accident. If you are involved in a car accident, and it is your fault, your car insurance will pay for the damages to the other car. If you are involved in a car accident, and it is not your fault, your car insurance will pay for the damages to your vehicle.

What are the consequences of not having car insurance?

There are a few consequences of not having car insurance. The first is that you may be fined by the police if you're caught driving without insurance. The second is that if you're involved in an accident, you will have to pay for any damage to your car and any medical expenses yourself. The third is that your vehicle could be repossessed if you can't afford to pay for the damage you've caused.

Myths about car insurance debunked

There are a lot of myths and misconceptions when it comes to car insurance. Here are some of the most common ones debunked:

1. You don’t need insurance if you have a good driving record.

Even if you have a perfect driving record, you are still required by law to have some form of car insurance in most states. The only exception to this rule is if you can prove that you are financially able to cover any damages that may occur in an accident (this is known as self-insurance).

2. Your credit score doesn’t affect your insurance rates.

This is another myth that is unfortunately not true. In most states, insurers are allowed to use your credit score as a factor in determining your premium rates. This is because studies have shown that people with lower credit scores are more likely to file claims than those with higher scores.

3. Insurance companies will always try to lowball you on repairs.

If you have comprehensive or collision coverage, your insurer will typically pay for repairs up to the actual cash value or replacement cost of your vehicle (minus your deductible). So unless you have an older car with very little value, it’s unlikely that the insurer will try to lowball you on repairs.

To put it simply, car insurance is a way of financially protecting yourself and your car in the event of an accident.

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