Most states—with the exception of Virginia and New Hampshire—require drivers to purchase and carry some form of auto insurance. However, insurance is more than just a tedious state requirement. The policy you carry can save you money and offer peace of mind during stressful or life-changing incidents. Hitting the road without coverage can cost you a lot. If you get into an accident, you’ll have to pay out of pocket for property damage, medical bills, and other compensations. Moreover, you can get into serious trouble with the law for not meeting your state’s minimum liability requirements. Understanding why auto insurance is so important for yourself and other drivers is a crucial part of being safe and responsible on the road. Learn more about why auto insurance is a requirement and what kind of coverage can protect you and those around you with this guide.
Financial Protection When You Need It Most
Auto insurance acts as financial protection if you get into a car accident. The expenses of a crash can add up quickly. Property damage, medical bills, compensation for missed income, and other reparations can end up costing thousands or even tens of thousands of dollars. That’s a lot for one person to cover on their own. This is where insurance providers step in. When you get into an accident, your auto insurance covers a lot of the expenses for repairs and compensations. Liability insurance helps you pay for damage done to others or their property. Meanwhile, additional coverages like personal injury protection or collision coverage protect you, your family members, and your property in the event of an accident.
Peace of Mind When Disaster Strikes
Hail, fire, vandalism, theft—there are a lot of things in life that are out of your control. When disaster strikes, the last thing you want to worry about is paying thousands of dollars to fix something that wasn’t your fault. Depending on the coverage you have, your auto insurance provider can step in and help pay the bills. Thorough insurance coverage can protect you from incidents like damage from animals, theft or vandalism, storm damage, and more.
Auto Insurance Is the Law
State laws and requirements are a huge part of understanding why auto insurance is so important. Most states require drivers to carry proof of insurance with them every time they hit the road. If an officer pulls you over or if you get into an accident without that proof of insurance coverage, you can face steep consequences. In addition to the cost of the ticket or expenses of the accident, you’ll have to pay fines for not having insurance. The state might even suspend your license or impound your car. This affects more than just your ability to cruise around town. Losing your license can hinder your ability to get to work on time, run errands, pick up kids from school activities, and more. You’ll have to purchase an insurance policy and pay more fees to reinstate your license and get your car back.
Different Types of Auto Insurance
Requirements for auto insurance coverage vary from state to state. In California, drivers must carry bodily injury and property damage liability insurance to protect other drivers, passengers, and pedestrians in the event of an accident. However, you can add other types of coverage to your policy for more thorough protection. As you build your policy, make sure you know what each coverage option means and how it affects you on the road.
Bodily Injury Liability
Bodily injury liability coverage pays for injury you cause to another person in an accident. This type of insurance helps you pay for medical bills and other compensation to drivers, passengers, or pedestrians. In California, drivers must have an auto insurance policy that covers at least $15,000 of expenses for injury or death of one person and $30,000 of expenses for injury or death of multiple people.
Property Damage Liability
Property damage liability coverage pays for property damage that you cause in an accident. This can include damage to other vehicles, residential or commercial buildings, or fixtures like street signs or power lines. California requires drivers to have minimum liability coverage of $5,000 for property damage. This ensures that property owners have the money to fix or replace their land or belongings in the case of an accident you cause.
Personal Injury Protection
Liability insurance covers other people in the event of an accident, but it won’t cover your own medical bills, property damage, or other expenses. That’s why many drivers choose to add additional coverages like personal injury protection to their auto insurance policy. Personal injury protection coverage pays for medical bills, lost wages, and similar expenses for you and your passengers after an accident.
Though most states require drivers to have liability insurance, not everyone follows these rules. If you get into an accident and the other driver doesn’t have liability insurance, the cost of medical bills and property damage might fall on you. Uninsured and underinsured motorist insurance covers you when the other driver’s insurance doesn’t.
Comprehensive and Collision
Comprehensive and collision coverage help pay for damage to your car in the event of an accident or other incident. Collision coverage kicks in after an accident, paying for vehicle repairs or reimbursement no matter who caused the crash. Meanwhile, comprehensive coverage helps pay for damage to your car outside of an accident. This covers vandalism, theft, storm damage, and even damage from animals.
Finding the Right Coverage for You
All states handle car insurance differently. Moreover, all drivers have different needs on the road. The price of your insurance policy will depend on the coverage you choose, your driving history, the kind of vehicle you drive, and many other factors. All insurance providers calculate their premiums differently, so make sure you take the time to read up on the deals and discounts each option can offer you. Comparing quotes is a great way to build a policy that works for your budget as well as your needs. At Saferoad Insurance, we help drivers seeking car insurance in Southern California find the perfect policy. Learn more about requirements, compare quotes, and find insurance that grants you peace of mind by visiting Saferoad Insurance today.