4 Reasons Why You Need Auto Owners Insurance

A few states in the union do not require that people purchase auto owners insurance. Those who decide to purchase it have been found to be paying around $1,600 for their auto owners insurance every year, and some people are even paying over $2,000 a year.

If they would not suffer any consequences for not purchasing cheap auto insurance from one of the many reputable auto insurance companies, they can save a significant amount of money per year. The following will explain why people will not want to save money in this area after all. Try our FREE quote comparison tool on our website by entering your ZIP code.

Reason #1: It May Be Required

Every state does not require that people purchase auto owners insurance, but they will require that a driver that causes a car collision pay for all injuries and damages. If they do not have an auto owner’s insurance policy in place at the time of an accident, several consequences will result.

In states where auto owners insurance is mandated by law, those who do not purchase it will be susceptible to:

• Fines
• Jail sentences
• Losing their driver’s licenses to suspension
• Losing their vehicle’s registrations to suspension or revocation

In states where lawsuits are not restricted, those who do not have auto owners insurance may be taken to court by everyone who was injured or had their property damaged. If they have any assets, they will, most likely, be required to sell them. If they do not have sufficient assets to cover the bills, they may be subject to having their wages garnished for several years until the judgment has been paid in full.

Auto owners insurance comprises of liability coverage. Bodily injury and property damage liability coverage is the type of insurance that is most often required by the states. It is also the coverage that pays the bills of anyone who was injured or had property damaged by an at-fault driver.

Reason #2: Some People Are Driving Without Auto Owners Insurance

Even though the state may require that all drivers purchase auto owners insurance, not everyone is complying with the law. Especially during times of recession, people who did follow their states’ laws and purchase liability coverage may allow it to lapse to save money.

Those who purchase uninsured motorist bodily injury and property damage will have payment for their injuries and damages if hit by an uninsured motorist or a hit-and-run driver. In some states, uninsured motorist bodily injury is required. In other states, it is optional but no less necessary.

If a driver is hit by someone who believes that maintaining a liability insurance policy is too expensive, they will not necessarily have the means to pay the bills. In these cases, taking them to court may not help the injured because these uninsured drivers may not have any assets.

The uninsured motorist coverage is going to ensure that the person who has been hit by an uninsured driver has his or her medical bills paid and their vehicles repaired.

Reason #3: Car Owners May Lose Their Vehicles to a Car Collision

When drivers cause an accident, they cannot file a claim with the other person’s auto owner’s insurance company to have their vehicles repaired and their medical bills paid. The at-fault driver needs to pay everyone’s bills as well as their own without help from anyone if they do not have auto owners insurance.

If a car is relatively new when it is run into another vehicle, there is the chance that the car cannot be repaired for an amount that the owner can afford. They may not be able to repair the car at all for a price lower than the market value, so they will need to purchase another vehicle.

If people have the optional collision coverage, the policy will pay to have the vehicle repaired whether the policy holder caused the crash or not. If the car cannot be repaired for less than the vehicle’s market value, the auto owner’s insurance company offers the policy holder the market value.

By not purchasing this optional coverage on a car that has a high market value, these vehicle owners may be without a vehicle if they cannot afford to purchase a new one.

Reason #4: The Vehicle May Be Destroyed In a Way Other Than Collision

A vehicle can be destroyed in a manner that is not related to a car collision. Auto owner’s insurance companies also sell different types of auto insurance policies to provide the funds to repair or replace a vehicle that has been damaged in a way other than a collision. Some of these instances are:

• Vandalism
• Hurricanes
• Tornados
• Floods
• Fire
• Becoming in contact with an animal
• When the car is stolen

In the event that a vehicle is damaged by a storm, the car’s owner will not have the option of filing a claim with an auto owner’s insurance company because it was not damaged by another vehicle. They will be able to file a claim with their own auto owner’s insurance companies if they purchase comprehensive coverage. Enter your ZIP on our website to start saving today!

If their vehicles are damaged by a tornado, for example, they will be able to have their vehicles repaired after they pay their deductibles. Without this optional coverage, any time that their vehicles are damaged by forces outside of their control, they will have to pay for these repairs themselves. If the car is stolen, they would have to replace it on their own.

Finding Auto Owners Insurance Companies

People do not need to resort to driving without auto owners insurance to save money. They can save money by switching from their current auto owners insurance companies that are charging them high rates to a company that will charge them much lower rates.

People can find these companies that have lower rates for them just by comparing quotes from a good comparison feature. The FREE comparison feature on this website returns several quotes for people to compare after they enter their ZIP codes. It doesn’t cost them anything to compare quotes, and they will find the auto owners insurance that they need.