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Why You Absolutely Need Auto Insurance

There are three very good reasons to get auto insurance:

1. It's required by law to drive!

2. One collision without auto insurance could financially ruin you for life.

3. You could lose your investment—think about both the vehicle and any loans.

The Rule of Law

All states except for one mandate some degree of auto insurance. Even New Hampshire, which is the only state not to require Liability coverage, mandates it if you have been involved in a collision from there on out.

So what happens if you drive without the insurance required by law?

Usually, there are severe punishments. It depends on the state, but at the very least you get a hefty fine. In most cases, you will also lose your driver's license. It is also very common for the offender to serve jail time. How much? Up to 15 years!!!

It may not seem like a big deal to drive without coverage, but what would happen if you caused a collision that severely injured or even killed someone? You would face paying giant bills and fines. Meanwhile, the persons affected would either suffer debts themselves or be forced to suffer the trauma. If you can't pay, you would likely be indebted for years and years since your future wages would be sacrificed.

If for no other reason than the law, get the state minimum auto insurance at least.

Save Yourself from Financial Ruin

On the road, each driver is responsible for the safety of others. Responsible not just morally, but financially as well. So when you make a mistake and the authorities think you are at fault for the mishap, you have to have a way of covering the costs to the other party.

If one or more people are injured, you will have to pay for their medical bills. With Liability coverage, that wouldn't be a problem. However, if you have no auto insurance, you have to pay perhaps tens of thousands, maybe even hundreds of thousands of dollars, out of pocket. Can you afford that?

Then, you have the property damage. Do you have the money to replace someone's car just lying around? Keep in mind, it could be a BMW you hit!

Protect Your Investment and Spending

Automobiles aren't cheap! If you crash your car out there and don't have any auto insurance, you are going to have to either go without a car or buy a new one.

What's more, if you took out a loan to get the vehicle, you will still be responsible for that and have to get a new vehicle.

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Why You Absolutely Need Auto Insurance

Auto insurance is there to protect you legally and financially. Compare quotes to get it cheap.