sometimes it seems that states mandate us to have car policy just to make insurance companies rich .
But is this actually the case ? Or are other factors at sour ?
Let ’ s dig a little bass .
According to the National Highway Traffic Safety Administration ( NHTSA ), there were 6,264,000 car accidents in the US in 2015. Those accidents resulted in 35,092 fatalities and 2,443,000 injuries. Property wrong occurred in 4,548,000 of accidents.

Those statistics represent the accumulative drive experience of 210 million accredited drivers in the US. That means that there ’ randomness about a 3 percentage chance you ’ ll get into an accident of some kind in any given year. That may seem humble, but if you do get into an accident and you don ’ deoxythymidine monophosphate have policy, the consequences can be submerge and flush financially devastating .
so permit ’ s visit the reasons why you need car insurance .

To compensate you for an accident caused by person else

equally a lot as you might hate the concept of car insurance, the fact that it ’ south required can be a major quilt if you get into an accident that ’ s caused by person else .
In that position, you ’ re the victim and in need of compensation for injuries that you sustained, a well as any damage to your fomite. Car insurance enables a person who may have no other fiscal resources, to compensate you for your loss .
Were everyone not required to carry car indemnity, you ’ d likely have to bring a lawsuit against the offending party. not only would that cost you money in legal fees, but there ’ s no guarantee that you ’ vitamin d collect compensation even if a court decides in your favor .
A court can issue a judgment in your privilege, but they do not enforce solicitation of the opinion proceeds .
You may be forced to wait years before the defendant is able to make the payment, if they always pay at all. On the other handwriting, if you have car policy, you can normally be compensated by the other party ’ south insurance company within a few weeks .

So you can compensate person else for an accident you caused

Let ’ s say you ’ re involved in an accident that ’ s intelligibly your demerit. If you didn ’ t have car policy, you can be the person on the early slope of a lawsuit. That can cause your credit score to crash and put a cloud of uncertainty over your future .
For model, if you needed a mortgage to purchase a home, the lender would require you to pay off the judgment before you can close on the loanword .
Having car indemnity enables you to get on with your life, even if the accident is your defect. certain, your bounty will go up after the accident, but you will be able to drive off knowing that the real cost of the accident will be covered by your indemnity company .

To get your car fixed no matter who ’ second mistake the accident is

car repairs are expensive. A single, apparently harmless fender carouse, could well cost a pair thousand dollars. In more good cases, your car may not be drivable.

If you didn ’ t have car policy and you were the cause of an accident, you would have to pay out-of-pocket for the compensate .
But because of cable car insurance, your car will be repaired or replaced reasonably cursorily .

To protect your assets

Let ’ s say that you think you have enough money that you could be “ self-insured ” in the event of an accident. possibly you have at least a quarter of a million dollars, and feel that you don ’ t need car policy .
That may be the case, but do you very want to lose your hard-earned savings in a car accident ?
If car indemnity does nothing else, it will protect your assets. This is because if you ’ re determined to be at fault, the early party will pursue your indemnity company, not you, to get compensation .

To protect your car lender

If you have a loanword on your car, the lender will need to know that you have adequate car insurance because the loan is secured by your fomite. If anything were to happen that would damage the car, it would besides diminish the value of it. That would weaken the car lender ’ s collateral .
Lenders are most matter to in knowing that you have collision and comprehensive coverage as part of your car policy policy. Collision covers price related accidents, while comprehensive covers non-automotive events, such as larceny, vandalism or natural destruction—like a corner falling on the car during a hard storm .
Both types of coverage specifically protect the physical value of the car, and that ’ s why they are required by car lenders .

It ’ south required by country law

We ’ ve saved this one for death because it ’ s the most obvious cause why you must have cable car policy. But all the reasons given above are why states mandate car indemnity coverage. By requiring that everyone has it, everyone is protected from the risks of own and driving a car .
In fact, car indemnity is mandated in 49 states. The lone exception is New Hampshire, but even in the Granite State, there is a legal requirement to have coverage if you have a loanword on your car.


car insurance is mandated for a reason—it protects you and others in the very real number event that you get into a car accident .
To find out what kind of insurance you need, look here .

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