Learn 7 Reasons Why You Should Have Auto Insurance

There are seven reasons why you should obtain automobile insurance. Whether you’re skeptical of your insurance coverage or simply interested in why it’s essential, it’s helpful to understand what you’re paying for.

Aside from being required in most states, automobile insurance is a worthwhile investment because it protects you and your assets. Have you ever been in a car accident with a limousine?

I have.

Fortunately, I saw him in time to brake, so no one was wounded. Nobody missed their prom since the vehicle was empty except for the driver.

I had a pleasant conversation with the motorist, he was cited, and his insurance company paid up. Aside from a nice story, the entire incident gave me an unusual and unexpected appreciation for auto insurance.

Because without auto insurance, even a minor fender incident could have turned into something far worse. So, why do we require automobile insurance?

Why do states require it?

(Is it worth paying for it in the states where it isn’t required?)

What role does auto insurance play in protecting our homes and, yes, even our relationships, and why should we be grateful for it?

Whether you’re unsure about renewing your coverage or simply interested, here are 7 reasons you need vehicle insurance.

1. It is mandated by law (in all but two states)

The most important reason you need automobile insurance is that you must have it. If caught driving without auto insurance, you could face a hefty fine or jail time.

According to Car & Driver, the penalties for driving without car insurance in Georgia are as follows:

• First offense: 60-day suspension of your license and car registration, and up to 12 months in jail, depending on the circumstances of your arrest.

• Second offense: 90-day suspension of your license and car registration, an $85 fine, and a higher risk of being sent to jail by the judge.

• Subsequent offenses: Same sentence as the second offense, plus an increased risk of going to jail and having your Georgia driver’s license permanently suspended.

Law enforcement isn’t particularly lenient with uninsured drivers. It’s also worth noting that the government will not release your license unless you produce proof of insurance coverage – and getting insurance with a suspended license is quite expensive. SR-22 insurance, as it is known, can range in price from 150% to 400% of a standard policy.