Car insurance stands alone as the only type insurance you are required by law to have. If you are going to drive a car on public roads anywhere in the U.S., you need to carry at least the minimum level of car insurance coverage to meet state requirements. Besides being a convenient method of transportation, cars also have the potential to cause a lot of pain, destruction and death. State government officials over the years decided that part of the responsibility of having a driver's license is to have insurance to protect yourself and others who might be harmed by your driving. The government requires car insurance to protect each and every driver.
Without insurance, all it would take is one substantial accident to financially bankrupt a person. The cost of repairs, doctor bills and hospital stays would quickly eat through most people's savings. To mitigate this problem, each state has set its own minimum insurance requirements. This is the minimum amount of coverage you need to have to be a licensed driver in that state. Look at some of the required types of insurance and you can see the reasoning why certain types are necessary.
Most states require liability insurance. Bodily injury liability and property damage liability cover the costs associated with damage and injury you may cause to property and to people in an accident. In liability coverage, you will actually have three different limits to determine. The first number is coverage you have for injury you cause to someone. The second is the amount of money to cover any injury caused to you. The final number money you designate to cover property damage. Medical payment insurance covers injuries to the driver and the passengers in your car, and begins immediately after an accident. Personal injury protection insurance is similar to medical payment insurance, but also covers lost wages, funeral expenses and payments for pain and suffering associated with an accident. Underinsured or uninsured motorist protection insurance protects you if a driver who causes you injury or damage doesn't have liability coverage at all or doesn't have enough to cover all the costs you incurred in the accident.
If you decide to drive without insurance, not only do you endanger yourself and others, but also you could be facing large fines. If you feel auto car insurance is too expensive, the best way to make it less so is to carry only the minimum amount to meet state requirements. It will also help to have high deductibles. This ensures that you are covered according to your state's requirements at the most affordable rate for you.
