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Car Insurance Required by Law

Car insurance required by law, as opposed to car insurance optional coverage, is on the books in almost every state across the country. Some form of insurance or financial responsibility requirement is in place no matter where you live. Car insurance is a requirement for those of us who cannot afford to self insure, which is a large majority. Yet increasing numbers of drivers are choosing to go without insurance. The reasons are easy enough to explain. Hard economic times coupled with steady or rising insurance rates make it tough for many low and moderate wage earners to make the payments and stay legally insured. Many get a policy just for the sake of the piece of paper and the auto registration sticker, and then just let the policy lapse or cancel it after that initial payment. It is tough for the insured drivers to know how to deal with this problem out on the road.

Financial Impact of Uninsured Motorists

The cost of getting into scrapes with other insured drivers is bad enough. But accidents involving uninsured and underinsured motorists cost drivers and insurance companies millions of dollars every year. The result for all of us who insure our vehicles legally is this: we essentially pay the cost of the uninsured drivers and the policies they should be carrying. So in states with extremely high rates of uninsured motorists out on the roads, insured drivers pay a huge premium for their compliance to the law. And in many of these states uninsured motorist insurance is mandatory, meaning that those who are insured basically pay the liability insurance bills for those who are not. Clearly, the financial impact of these uninsured drivers is huge.

Experts tells us that uninsured numbers tend to swell during tough economic times, and that they go up faster than they eventually do back down when things get better financially for the average citizen. Some drivers choose to go without, and many others carry as little as they can, exposing others to the potential for an underinsured claim in the event of an accident. In some states a very sizable minority of drivers does not have any insurance, and in some pockets of these states numbers can be even higher. If the unemployment numbers in certain parts of the country do not come down, experts generally feel that uninsured and underinsured numbers will go up.

Driving Without Insurance Illegal

Motorists who are thinking about foregoing insurance altogether need to be aware of the legal ramifications of their choices. Driving without auto insurance is illegal, not matter what the reason for it might be and not matter what your finances might look like. Financial responsibility is a very serious matter, especially as it pertains to liability cases stemming from at fault accidents. Tickets for driving without insurance can run thousands of dollars. Offenders can be jailed, lose their license and give up their registration on their vehicles. And of course, all of this is in addition to the potential financial liability of a civil lawsuit that could result from getting into an accident and not having any insurance.

Times are tough and no one is going to argue that. Almost everyone can identify with the kind of logic that causes people to consider allowing their auto insurance policies to lapse. But for most of us, the risks and dangers are just not worth the potential benefits. It is truly a short term gain, long term loss scenario. Paying for car insurance is painful sometimes, but at least it provides us with protection from much larger expenses that could come about in a number of different ways if we are uninsured. Fines and jail time are just the beginning, and financial responsibility is a serious matter that should be taken seriously. It is not something that should be overlooked or neglected in the name of savings a few bucks.

Car Insurance Provides Financial Security

Car insurance can get very expensive, and sometimes it feels like we are throwing money away on a policy we may never use. This can be especially true for good drivers and those among us who never make a claim even when we could potentially do so. But auto insurance is valuable just for the peace of mind it offers. Knowing that you are covered regardless of the circumstances is definitely worth something. Sometimes people make light of their need for auto insurance for one reason or another.

But there is always a chance that you'll have an accident or that something else will come up requiring a good auto policy. It is smart to be prepared and to be covered with the best coverage you can afford, so start your serach for free auto insurance quotes now.

Car insurance is required by law, and all drivers who are smart will carry quality auto insurance plans.


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