Auto insurance - why do we need it?

A lot of people tend to ask the same question: why do we need auto insurance? Well, despite the obvious fact that you are legally required to do that in most states of the US unless you don't want to have problems with the law, there are additional reasons for getting auto insurance. After all, it was made mandatory not just because the insurance companies wanted so. Otherwise we would have all types of insurance imposed by law. So what are the reasons for auto insurance to be mandatory and why you need it at all?

If you have ever used auto insurance coverage you know exactly why everyone should get it. It's really that obvious when you actually use it. When your car is insured you can always rest assured that any accidents that happen while you're behind the wheel won't lead to any court action and won't considerably affect your financial situation. Normally there can be tens of thousands of dollars involved in an average accident in the form of repair and medical costs. And if you have caused it you would normally have to pay for the expenses out of own pocket. That's when auto insurance kicks in – it settles all the payments to a maximum level you have to choose when buying a policy. And you can have even other situations covered under auto insurance such as fire, theft, riots, storms and other forms of damage not resulting from traffic accidents, if you buy a respective type of coverage.

It's much easier both for the authorities and the drivers to have mandatory auto insurance. Just imagine a situation where you'd have to settle accident claims through other means such as courts. It would take a lot more time and cost you times more just to settle a single dispute after a minor hit and who knows, maybe the other party would wand to file an appeal if they feel that the decision is wrong. It would be a nightmare for drivers so in order to make things much easier to settle auto insurance was made mandatory is a means of regulating disputable situations on the road.

Sure, some of you may never use auto insurance and will still have to pay their regular premiums just to have the policy valid. But it's one of those situations when it's better to have something and not use it rather than not have it when you really need it.

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