Auto insurance is vital because it offers financial security if you are involved in a car accident that causes harm to or injury to another person’s vehicle.
Auto insurance protects you not only from damage to your vehicle, but also from financial responsibility. You could be responsible for hundreds of thousands
of dollars in costs and accidents if you get into an accident without insurance.
What happens if you are involved in a car accident and do not have insurance?
If you’re in an accident and don’t have auto insurance, you could face fines for not getting insurance, as well as extra fines if you’re ticketed for
the accident, depending on the jurisdiction.
The average cost of a car accident is staggering: according to the Insurance Research Council, the average insurance claim for bodily injury in 2013 was $15,506. If you don’t have car insurance and cause an accident, you could be held responsible for all losses and injuries.
If you have auto insurance, it will cover the other driver’s medical expenses as well as the cost of replacing their vehicle (up to your insurance policy limits). You’re legally
responsible for the harm you do to another person and their property in a car accident you cause, so if you don’t have insurance and can’t afford to compensate for the other driver’s repairs and medical costs, you might face jail time