Carrying Car Insurance Is A Smart Choice

While it's true that not everyone needs to carry car insurance, the vast majority of drivers benefit from it. Policies protect your finances in the event of an accident or theft. But some people, such as young drivers and owners with only a couple thousand dollars invested in their vehicle, don't need to spend money on them. Car insurance isn't a vital expense, but it does have plenty of perks. It's not only smart, it's mandatory for you to carry insurance in the majority of states.

Here are three reasons why:

1. Vehicle owners often need to pay for repairs after an accident or theft -- and that money comes directly out of their wallets. Without insurance, you're responsible for all of these costs (minus your deductible). You'll likely have to shell out for your own hotel if you're forced to leave the scene of an accident. Policies will also reimburse you for lost wages if you can't go to work because of injuries sustained from a car crash as well as replace any property lost during a theft or total loss accident. In short, your vehicle will need to be repaired or replaced and your life will have been thrown into chaos. Having car insurance is a safeguard against these problems already built right into the policy.

2. You can save on your credit score by purchasing an affordable policy. Your credit score is like a report card for banks and lenders -- it determines how likely you are to pay back credit cards and loans at the end of the month as well as whether you're supposed to pay more than fair market value when renting an apartment or buying a home. When you make any type of purchase, such as auto insurance, your credit score will take a small hit. However, if you find a policy with affordable premiums, you can save money in the long run and work toward improving your credit when it comes time to get an apartment or mortgage.

3. Your car is already insured -- for the most part. If you own your vehicle outright, it's generally covered under your homeowner's insurance policy and nothing else is needed. However, if you're making loan payments on your car or owe more than the value of the vehicle itself, both of these instances require additional protection against loss or theft through a separate policy instead of just relying on homeowner's insurance to cover everything in the event of a loss.

While not everyone needs it, most drivers benefit from carrying car insurance.

Copyright 2012. Sean Davis is a writer and entrepreneur from the Boston, Mass. area. He writes on a variety of topics, including business, finance, personal development and technology.

Title: The Importance Of Car Insurance After An Accident

Everyday you are driving your vehicle it's important that you protect it with car insurance . It will help you financially if you ever get into an accident. If you are in an accident and do not have insurance, then you will be responsible for the damage done to your vehicle, the other drivers car, and any injuries sustained during the accident. Car insurance can help you pay for these expenses which could cost a lot of money depending on the damage (especially medical bills).

As previously stated it's important that you protect your vehicle with car insurance. If something were to happen and someone else is at fault , then they would be responsible for all of the damages to both your vehicles and any injuries sustained during the accident. Without having insurance though, any expenses associated with these accidents would be up to you to pay . 

The insurance company doesn't care if you are a honest person that means well and you weren't driving that car intentionally. If you were at fault in an accident, then they will still file a claim for the damages done to your vehicle and any injury sustained.

If you have car insurance and get into an accident with someone else who does not have car insurance , then your insurance company will cover all of this expenses associated with the accident. If you were not at fault in the accident, then your policy should protect you financially against any claims.

The amount of coverage for these expenses is dependent on what type of policy you have . If you get into an accident with someone who has more coverage than your policy, then you may be responsible for paying out of pocket rather than having your car insurance paying for the expenses.

If you have an accident and must pay out of pocket for these expenses, then you will most likely want to file a claim with the other party's insurance company. The price of their insurance policy will go up after your accident and some people will not be able to afford that extra expense. You may even find yourself in this situation if your insurance is too cheap to cover all of the expenses associated with your car and any injuries sustained during the accident.

You should also consider the fact that having car insurance can help keep your rates lower as well. Insurance companies give you a discount for having more than one car insured on your policy . This discount works to give you a lower rate just for adding another vehicle onto your policy.

If you have good grades and a clean driving record , you may even find yourself finding cheaper rates when comparing quotes from other insurance companies. 

Now, if your rates do not go down, then at least the amount of coverage that you have will be increased to cover the damages to your vehicle and any injuries incurred during an accident . These are just some reasons why it's important to have proper coverage and why you should buy insurance for your car .

Conclusion

You should always make sure to have the proper coverages in place. Car insurance can help you financially if anything were to happen with it. If you take a look at different insurance companies, you can see how cheap the prices are for different coverage amounts and levels of coverages. 

Car insurance can be expensive so having a good policy that includes the right amount of coverage is important if you want to know how much less on your bills you will be paying for it.