Do you have to have car insurance?

In almost all 50 states, you’re required to purchase car insurance. Not only is car insurance mandatory, but it can also provide financial protection in the event of an accident. Your insurance policy can help to pay for medical bills and repair costs.

How much car insurance do you need?

How much auto insurance coverage you need depends on various factors, including your car's value, net worth and more. In general, you should try to purchase more than the minimum coverage amounts if your budget allows it. Purchasing as much auto insurance as you can comfortably afford can help to protect you from financial risk if you’re involved in a car accident.

Why is car insurance important?

Car insurance protects your finances, vehicle and other drivers on the road. If you get into an accident, it can help to ensure that medical bills, auto repair costs and other expenses are covered. Auto insurance is an investment –– while you may hope you never have to use it, it can provide a financial cushion if you get into an accident.

Why Do You Need Car Insurance? Reasons Why You Should Get Coverage

Name: Why Do You Need Car Insurance? Reasons Why You Should Get Coverage
Item: Why Do You Need Car Insurance? Reasons Why You Should Get Coverage
Author: Margaret Wack

In almost all states, car insurance is required by law. A car insurance policy protects you and your passengers in an accident –– whether or not you’re at fault. Car insurance can save you from financial distress by footing the bill for medical costs and auto repairs. Knowing why you need car insurance and what type of coverage to purchase can help you make the most of your policy.

ByMargaret Wack

Edited byAmy Wilder

Updated: November 8, 2023

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About Margaret Wack

Margaret Wack is a freelance writer who covers insurance, saving, investing, banking, and more. Margaret earned a bachelor's degree in classics, comparative literature, and poetry from Smith College and a master's degree from St. John's College.

Why Do You Need Car Insurance? Reasons Why You Should Get Coverage

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