Car insurance is an important thing to carry. It helps protect you and others on the road, and it is also a legal requirement. However, many people go without car insurance because they do not think it is necessary or do not have the funds. Cheap auto insurance can keep you protected without breaking the bank and make it more likely for you to comply even if you do not find it necessary. Outside of personal responsibility and legal requirements, there are other negative consequences to not having car insurance.
If you are found to be at fault for a car accident and a person gets injured, you can be sued for any damages. You will need to pay for the injuries and damages to the other people which can include pain and suffering, property damage, loss of wages, medical bills, and other bills. On top of this, you will likely have your own damages to pay for.
Even if you think the damage is small, it can still add up to tens to thousands of dollars. If you lose the lawsuit, the court could take any funds in your bank account, your house, wages, or even future personal property.
Car insurance protects you from this situation. The insurance company will be responsible for paying for the damages, up to the amount of coverage you purchased. Not purchasing enough coverage could still leave you with a portion of the bill, so it is important to carry as much coverage as you can afford.
There are many reasons why you could potentially have your license suspended after an accident, but if you are found at fault and the damages total up above a certain point, you could potentially have your license suspended anywhere from 30 days to 6 months.
Oftentimes you will be fined for causing an accident and not having insurance. The amount of the fine varies from state to state and will be based on the accident, but they have the potential to be thousands of dollars.
Besides helping you avoid the above-mentioned consequences, auto insurance – even cheap auto insurance – has a number of other benefits as well. Auto insurance policies give you protections such as defense lawyers and indemnification, which can be invaluable if you are found to be at fault of an accident.
Under indemnification, the insurance company will be responsible for the payment of damages incurred in an accident, and you will be responsible for damages above the policy limits as well as your deductible. This means you will be paying out of your own pocket, so if you can afford it, a low deductible and high policy limits will protect you the most – although they might not make financial sense when it comes to the premium.
Insurance companies will also provide you with a defense lawyer if you are sued for causing an accident. The law requires your insurance company to hire a defense lawyer and help you pay for it, but you might be responsible for some of the bill.
Most people know that auto insurance is a legal requirement. However, many people do not know what the consequences are to not carrying it. Even a cheap auto insurance policy can help you avoid these consequences.
When it comes to finding cheap auto insurance policies, research is essential. Nowadays research takes little effort with the Internet as a resource. Finding insurance policies online can save you time in addition to money.