According to the DMV the owning and operation of a motor vehicle is not a right but a privilege. Once in the driver’s seat, you are responsible for the operation of your vehicle and all actions taken behind the wheel. Auto insurance is legally a mandatory part of this privilege. It is also important to remember the benefits of having proper coverage with this kind of insurance and the peace of mind it can provide the driver while going from point A to point B.
An auto insurance policy can pay for damages to either a vehicle, personal property and/or medical expenses for individuals who are injured in an accident caused by a driver. This type of coverage is specifically designed to offer various kinds of coverage, eligibility and pricing depending on an individuals’ wants, needs and, of course, driving record. What one can receive from this coverage usually greatly outweighs any possible drawbacks. Should you not have this insurance and become involved in an accident, you would likely be violating the law and, as a result, be wholly responsible for any compensatory damages and also be subject to fines and/or jail time. To emphasize, if you have no coverage and are involved in an accident, a court might well mandate that all resulting costs be paid by you out-of-pocket.
Liability insurance is what is legally required in some form in all states. Each state has specific minimums regarding dollar amount requirements for this type of coverage, but this does not vary greatly. Collision insurance is an additional form of coverage and is usually not mandated by law but is required by a lender should you have obtained a loan for your car. If you damage your own vehicle, you are responsible for paying any (often expensive) costs for repair unless you purchase a policy that includes collision coverage. This coverage usually comes with a deductible and the amount varies according to the amount you wish to pay for your monthly premium and how much you are willing to initially pay out of pocket before the coverage kicks in.
Should you require to utilize your own coverage after an accident occurs on the road, you are well-advised to immediately contact your insurance provider and give them the details regarding the accident event. If an accident report was filed by law enforcement, it is incumbent upon you to put your agent or insurance company in contact with those who filed the accident report. (You can also usually send a copy to the insurance company yourself.) The insurance company will then adjust the compensation amount according to the information provided on the accident report and the repair bill and/or medical monetary amounts.
Insurance protects you and your family financially but it also helps you to remain free of so much potential hassle. That alone can often be worth it!