If you drive a car on the road, you or the person who owns the car is required to carry an auto insurance policy.
Auto insurance is a policy that pays for property damage or medical bills of those involved in a car crash. In a no fault state, your own insurance company pays for your damage whether or not you were at fault for the accident.
Who Should Have Car Insurance?
Anyone who drives a car should have car insurance. If someone drives a car that you own, you should have an insurance policy on that car.
What Does Car Insurance Do?
Car insurance policies give you money to repair damage to your car, replace property stolen from your car or replace your car in the event that it is stolen.
What Types of Insurance are Available?
Comprehensive insurance covers damage to your car that is not caused by another car. For example, damage from a fallen tree branch would be covered under that policy. Collision insurance protects you if your car is damaged in an accident. Liability coverage helps you pay for medical bills or the cost to repair damage done to a car in an accident that you were at fault for.
Major Benefits of Car Insurance
The biggest benefit of a car insurance policy is that you are financially protected if you are in an accident. You won't have to pay to repair or replace your car or thousands of dollars worth of medical bills that could result from a crash. Additionally, you may be able to get a rental car if your car is damaged for a significant period of time.
The penalties for not carrying auto insurance could include a fine, possible jail time, or even community service in some U.S. states.