Look, we get it, there are a bunch of things you’d rather spend your money on than car insurance. And when you look at the amount you spend monthly or annually on your auto insurance policy, we bet you’ve considered forgoing it altogether. Some drivers figure that if they drive safely, they won’t ever get in an accident, and that they can spend the money they might spend on insurance on a whole host of more fun options.
While we get the temptation, car insurance isn’t one of the things you should opt out of. On average, there are 6 million car accidents in the U.S. annually. (1) How many of those people do you think planned on getting in an accident that day? Not many right?
3 Reasons You’ve Gotta Get Car Insurance:
In most states it’s legally required.
Even if there’s no accident involved, if you are found to be driving without the state required minimal amount of insurance, you can be fined, lose your license or even face jail time. (2) And really, for good reason. If you cause an accident without insurance, you are personally responsible for any damage you cause. But, keep in mind that only acquiring the bare minimum as required by law isn’t always the best call either. Just because you have some car insurance doesn’t mean you have enough car insurance. If the damages you cause exceed your coverage, again, that’s a direct hit to your wallet. (3) Now, maybe you’re super confident in your driving abilities, but even if someone else causes an accident, you’re not necessarily in the clear. In some states the amount you can sue another driver for can be limited if you’re driving without the required amount of insurance. (2)
You could be on the hook for a rental car.
Take a look at your day-to-day. Do you rely pretty heavily on your car to get from point A to point B? Now, consider for a moment what would happen if you wrecked your car tomorrow. If you don’t have a backup car waiting in the wings, you’ve got to find out pretty quickly how to manage your daily travels or commute. Spoiler alert: a daily Uber ride adds up fast. When your car insurance includes a rental vehicle, this process is pretty painless. Usually, your car insurance will cover a certain amount per day for a rental vehicle while your car is in the shop. But, if you skimp on this particular bit of coverage, you’re on your own to fund a rental car. And let’s be honest, after a car accident, the last thing you want to do is drain your savings just to borrow a car to get to work. (4)
Many of us have been there. You’re driving down the road. Minding your business, and in all respects driving safely… when BAM, a rock pops up and cracks your windshield. It’s not something you can really avoid. It has nothing to do with your ability to drive. But there it is, a crack spiderwebbing across the glass that you now have to deal with. If you don’t have comprehensive coverage, that’s an out of pocket pain in the butt that can really put a damper on your day.
These are just a few examples of why having car insurance can save you some hassle in the event of an accident. But it’s not just minor hassles at play. Having adequate car insurance coverage can prevent a run-of-the-mill car wreck from putting you in a difficult financial position for years to come.