Auto insurance is a mandatory requirement for all drivers. Many motorists understand this fact. However, there are quite a few drivers that do not realize the importance of having any type of coverage. Why does the law require drivers to have insurance? The primary purpose of auto insurance has to do with financial protection. Without insurance, things would become extremely complex in terms of accidents and driving privileges. Keep reading to find out why insurance keeps drivers from being sued and even jailed when they are involved in a bad situation on the road.
The Real Purpose for Auto Insurance Coverage
Auto insurance is necessary because it helps to protect people in the event of an accident. Insurance is also necessary for people who get behind the wheel of a vehicle. Without it, a person cannot legally drive. States have laws regarding auto insurance that require drivers to operate their vehicles with insurance. If a person is caught driving without insurance they can be fined, lose their license or go to jail.
In some situations, a person can experience all three of these conditions if a court feels it’s warranted. The Insurance Information Institute also says that insurance is important for protecting motorists against the theft of their vehicle. Auto insurance is also needed for people who cause (liable) an accident. Liable individuals are typically required to pay for the damage of another person’s vehicle and property and/or their medical bills if they were injured.
Auto Insurance Coverage and Driving Privileges
The Zebra is an auto insurance comparison website. The site informs motorists that they need insurance to protect themselves from financial responsibility in the event they cause an accident. Remember that 15, 913 accidents happen every day of the year within the United States. At least 3,300 people will die every year from an automobile accident. The truth is that accidents are a frequent occurrence on America’s roadways. People are constantly injured in most of these collisions and vehicles are damaged. Some are even destroyed. Some driver will usually be at fault for causing an accident.
Even in states where there are no “at-fault” laws; a motorist’s will usually be responsible. Courts know that many people will be sued and that thousands of accident victims would never be compensated if it were not for auto insurance. The demand for auto insurance is important. This is the reason why courts require people to have insurance before they get behind the wheel. It is always advisable for people to have some type of coverage before they drive. Even cheap insurance such as liability is better than no insurance at all.
Auto Insurance Coverage and Driving Habits
Believe it or not, auto insurance influences a person’s ability to drive. When people get behind the wheel, they feel safer with an insurance policy. People who have a habit of speeding will generally feel freer to speed more often when they have insurance. Drivers who are aggressive will typically openly display this attitude more openly as they travel to different destinations. People with insurance do not have a fear about being caught on the road without protection. This is important for people to understand.
Driving is something that most people do and having insurance protection gives them a feeling of security. They also know that if they cause an accident, they will not have to lose money over the situation. This is important because many people are living paycheck to paycheck and cannot afford thousands of dollars for property damage, vehicle damage and for a person’s medical bills. Insurance companies provide a full range of coverage policies that will fit a driver’s budget and their driving requirements.