3 Reasons why is car insurance mandatory
Find out why car insurance is so essential in the U.S.
When looking into car insurance, it can be daunting, time consuming, and frustrating not knowing where to begin. You may wonder what coverages are necessary in your state or rather why it’s good to have coverage at all. Find out here why is car insurance mandatory
- 3 Reasons why is car insurance mandatory
- 1. Why is Car Insurance Mandatory: It's required by Law
- 2. Having car insurance helps when you are in an accident
- 3. The reason why is car insurance mandatory is because its to protect your assets
- What is the average cost of liability only?
- Clean Driving Record Rates
- Why does your car insurance fluctuate throughout the year?
- Car Insurance is absolutely mandatory because
- FAQ
- Q1: Why is car insurance mandatory?
- Q2: What are the consequences of driving without car insurance?
- Q3: How can I choose the right car insurance coverage?
- Q4: Why are you forced to have car insurance?
- Q5: Is car insurance mandatory in the USA?
- Q6: What's the point of car insurance?
1. Why is Car Insurance Mandatory: It’s required by Law
There are in fact many reasons as to why you should have insurance on your car starting with the fact that car insurance is mainly required by law. In most states there is generally a minimum of coverage you must obtain to be able to have your vehicle legally on the road.
Those requirements include bodily injury liability insurance, property damage liability, and half of the states require uninsured/underinsured motorist insurance, uninsured/underinsured property damage and personal injury protection insurance.
2. Having car insurance helps when you are in an accident
Secondly, on why is car insurance mandatory on your car is useful because it also helps cover yourself if you are responsible for an accident. When causing an accident it can be quite alarming and difficult trying to get the other person’s full name, contact information, insurance company, policy number, drivers license, and license plate number.
Furthermore, being at fault for the accident means that you are accountable for bodily injuries and property damage to the other vehicle. Liability insurance is so you don’t have to pay out of pocket for those expenses.
By having other car insurance coverages, on top of liability, it makes the process go much smoother. Certain types of car insurance coverages, such as collision insurance or personal injury protection, pays for certain costs no matter who is actually at fault in said collision.
3. The reason why is car insurance mandatory is because its to protect your assets
Lastly on why is car insurance mandatory is because it can help protect your assets. If per say you got into an accident and didn’t have any liability insurance on your car you would have to pay out of pocket and depending on how severe the accident that could result in a huge loss from your income. In addition, if you have your own business or property, a court judgment could have the ability to start taking away from those assets to pay off on the accident damages.
Therefore, drivers that have a lot of assets to protect, the best decision is to insure your car and consider an insurance policy with higher liability limits because typically the state required limits aren’t much, and when those limits aren’t enough, you get stuck paying for the rest.
What is the average cost of liability only?
Do you have to obtain full coverage on your vehicle?
When trying to understand why is car insurance mandatory it is important to understand the differences between getting full coverage on your vehicle and getting liability only for your vehicle. The key differences are as followed:
Full coverage car insurance costs an average of 1,997 per year
Liability car insurance costs an average of $720 per year.
Full coverage includes collision and comprehensive insurance in addition to a state’s minimum car insurance requirements, while liability does not include that particular coverage and only requires the minimum state requirements.
While having liability coverage only, you mainly will only be able to pay off damages that affect other vehicles or injuries on other people that you may have caused by said accident, while full coverage not only covers other vehicles but also your vehicle as well even in accidents when you are at fault.
When deciding whether you should get full coverage or liability only you should definitely consider your state laws, the value of your car, and your financial situation.
Clean Driving Record Rates
| Dairyland | $130 |
| National General | $93 |
| AssuranceAmerica | $129 |
| The General | $155 |
| Bristol West | $146 |
| Progressive Insurance | $97 |
| Suncoast | $144 |
| Mendota Ins. Company | $112 |
Why does your car insurance fluctuate throughout the year?
What factors may alter your car insurance premium?
Having your car insurance rate go up every year or even every six months can be rather confusing especially if you never made any claims or added any new traffic violations to your existing policy. Therefore seeing a slight increase within the year can be quite aggravating. Some of the many factors why your car insurance could be expensive is:
If you add a new vehicle or switch a vehicle
If you add or change a driver on the policy
If you decide to increase the coverage limits
If you reduce the deductibles on your policy
Your annual increases are coming from a general rate increase
Decreasing or disappearing new business discounts.
- Assessing your risk factor is determined by your age, the make and model of your car, your driving record, where you drive and where you keep the car, your claim history, and your credit rating.
Car Insurance is absolutely mandatory because
In essence, understanding why is car insurance mandatory can be mentally exhausting finding out as to which carrier would work best for the model of your car, your financial situation, being the most user friendly, and the type of coverage you’re looking for. When you finally make the decision that is best for you it’s great to realize that car insurance is required because it is actually here to help you, your family, and your belongings in the long run!
We are here to guide you and come up with the best solution suited for you so remember we are always happy to help!
FAQ
Q1: Why is car insurance mandatory?
Car insurance is mandatory to ensure financial protection for drivers and others in case of accidents. It helps cover medical expenses, property damage, and liability claims.
Q2: What are the consequences of driving without car insurance?
Driving without car insurance may result in fines, license suspension, vehicle impoundment, and legal consequences. It’s important to have coverage to comply with the law.
Q3: How can I choose the right car insurance coverage?
To choose the right car insurance coverage, consider your needs, budget, and state requirements. Our experts can assist you in finding the best coverage. Call us at 1.888.445.2793.
Q4: Why are you forced to have car insurance?
You are required to have car insurance as a legal safeguard to protect yourself and others in the event of an accident. It ensures that financial responsibilities for injuries and damages are covered.
Q5: Is car insurance mandatory in the USA?
Yes, car insurance is mandatory in most states in the USA. Each state has its own minimum insurance requirements that must be met to legally drive.
Q6: What’s the point of car insurance?
The point of car insurance is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It offers peace of mind and financial security.
Last Updated on by Amanda Moss