Well, for starters, in most US States Auto Insurance is required by law. There are only two states that do not require Auto Insurance – Virginia and New Hampshire. Even though insurance is not mandatory in these states residents are still responsible for damages resulting from a car accident – in New Hampshire up to $50,000 for liability and $25,000 for property damage. If the resident is unable to pay for damages, then they can expect to have their licenses and registrations suspended. Virginia residents can avoid auto insurance by paying the state an uninsured motorist fee of $500 annually. This does not provide accident coverage of any kind and the resident who caused the accident is still liable. Even in the states where car insurance is not required, it is not a good idea to forego auto insurance coverage.
So, what exactly is Auto Insurance and why do I need it? Insurance is a contract between you and the insurance company. The contract stipulates that as long as you pay the premium, the insurance company will agree to pay for your covered losses. The amount that is paid by the Insurance company is based on several factors including your deductible and the limit you choose for your policy.
Anytime you get behind the wheel of a car you are taking a financial risk. This financial risk is on you in the event of an accident. Buying Auto Insurance will mitigate some of this risk. Auto
Insurance is about transferring that risk to the Insurance company that will take on much of that risk for you for a premium.
An Auto accident can go two different ways – either you are at-fault or not-at-fault. If an accident is not your fault and the other driver does not carry adequate insurance, you may still
have to pay for some of the damages to your own vehicle and for any medical bills if you are injured.
When you are at-fault in an accident, you are typically liable for damages to the other person’s vehicle as well as any medical costs of injured victims. In this case, you are also responsible to cover repairs to your own vehicle and the cost of any legal fees if you are sued. All your assets are at risk if you are uninsured or underinsured.
There are many reasons why you should buy Auto Insurance. Car Insurance can help protect you and your family from huge expenses. By investing a small amount now in your own protection, you can help avoid costly expenses in the future. If an accident happens, you want to make sure that you have the right coverage to take care of any property and bodily injury costs that may arise. With the right car insurance, you can feel confident that you are protected.
You can submit your information for an Auto Insurance quote or speak to one of our licensed
Insurance Agents @ 901-465-0011 to learn how you can better protect yourself and your family today. We look forward to working with you!