subject: Why should I necessarily insure my car? [print this page] Why should I necessarily insure my car? Why should I necessarily insure my car?
Financial obligations with a mandatory character always seem to get people down. We love it when we have a choice, right? So when it comes to paying our regular insurance premiums for having our cars obligatorily covered many people start asking the true purpose of vehicle insurance and why it's imposed on all drivers. Some go all the way to dropping their coverage altogether and driving the roads with no insurance at all. The outcome of such a decision usually comes with a substantial fine or, worse, paying out of own pocket for the damage caused during the accident. So why this type of insurance is mandatory, and moreover logically necessary for any car owner? Let's first look at the facts.
Car insurance is a legal requirement for operating a vehicle in all states of the US. In some states you won't be able to get the plates registered unless you provide a perfectly valid insurance policy. Not meeting the insurance requirements results in fines, license suspension, car confiscation and even time in custody, depending on the state legislation. But what are these insurance requirements in the first place? Well, it's not that serious as it may seem. The only type of insurance coverage that is actually mandatory in the US is third party liability, which includes bodily injury and property damage. These two types of coverage pay for injuries or damage respectively caused by the policyholder to a third party while operating the insured vehicle. If put simple, third party liability coverage lets you cover the mess that you've caused without having to pay out of own pocket. And while accidents are quite common on the road with so many cars out there, this coverage type assures that everyone has the necessary minimum coverage to pay for the accident if it takes place. That's why car insurance is also used as a proof for the financial ability of the driver to cover the costs of repairs or medical attention that he or she has caused.
OK, now that we're done with third party liability coverage, many of you might ask about all other coverage types you carry in your policies. It may be a relief for some of you, but they all are purely optional. While you have to meet a certain limit with third party liability, all other coverage types can be freely modified and excluded from the policy. Take note, however, that if you're using a car loan to purchase a new vehicle your contract will usually force you to buy comprehensive and collision coverage as well, so keep an eye out for that.
But let's take a look on the logic side of the matter for a moment. If car insurance wouldn't be mandatory it still would reasonable to purchase it. Why? Simply because it gives you a peace of mind while being behind the wheel. Sure, everybody think that they will never have accidents because they are so good at driving. But accidents still happen and the costs involved in repairs and medical assistance account tens of thousands of dollars. Not many people can afford to cover such costs out of own pocket, that's why we use car insurance and that's why it's a real necessity rather than an option.
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