Is car insurance something I really need?
Insuring your car is not only the law, it’s the smart thing to do. There’s an old saying that an ounce of prevention is worth a pound of cure and regarding car insurance, nothing was ever truer.
When (not if) you are involved in a collision, whether it’s your fault or not, you put everything you own and even your future earnings at the mercy of another driver and their attorney. Drivers with no auto insurance have lost their homes, their savings, their retirement accounts and their health because of a moment of carelessness or bad luck on their part or the part of another driver.
Car insurance covers you in case of a collision. If you’re involved in an accident, any damages to another car or its driver is paid by your insurance company, minus your deductible. If the other driver is at fault, his or her insurance company will pay your expenses. If you don’t have insurance, you’ll not only get a traffic ticket and possible suspension of your driver’s license, you’ll still be liable for any damage done if the accident is your fault. If you have no money to pay for the damages, you may end up with a lien on your property and your wages garnished.
When you have car insurance, your passengers are also protected. Their medical bills and material losses will be reimbursed and insurance may protect you from any lawsuits that they may decide to file against you.
Insurance premiums do affect your budget but it’s usually much more expensive for you not to have it!
A great read in between: Auto Insurance for Sports Cars