Everyone yearns for they day they turn sixteen years old. What happens on that glorious day? They are legally allowed to get their license, of course. With a license, however, comes responsibility. Once a person can drive, the stage of their life where they have to become responsible finally starts. With a license, a person needs a vehicle and in order to drive, a person has to have automobile insurance.
Why is car insurance important? Well, firstly, it’s the law. A person caught driving without insurance during a traffic stop or a random check can lose their license and they can be forced to pay hefty fines. In addition, if a person without insurance is involved in an accident where another motorist or another person’s property is involved, a driver opens him or herself up to a huge liability. In addition to the standard penalties of being caught driving without insurance, the person can also be held personally liable for all damages and medical bills caused by the accident if the accident is their fault. If a person doesn’t have the money to pay for damages, they can be sued, and their property can be taken or their wages garnished until the debt is paid.
Car insurance also isn’t that difficult to get, so as long as a person is driving, there isn’t an excuse not to have it. There are policies available for all types of drivers, from a liability only policy for a person with an older vehicle, to a full comprehensive / collision package for a person with a newer car. Rates are significantly different between policies, but if a person shops around they can often find a policy in their price range.
Liability only policies are on the cheaper end of the spectrum, but they only cover damage done to other people / property / vehicles. Collision insurance covers an insured party’s vehicle, up to replacement value, in the event of a collision, and comprehensive insurance covers a person’s vehicle in the event of fire / theft / an “act of God” / etc. All insured drivers are required to carry liability insurance, but collision / comprehensive insurance is only required depending on if money is owed on the vehicle or if a driver chooses to carry full coverage.
In addition, a person can often get some add-ons to their insurance policy, which are often relatively cheap, but can come in handy. For example, a person can add towing coverage, which pays for a tow truck, even if a person’s car just breaks down and they need it taken to a shop. Another example is rental car coverage, which covers the cost of a rental while a vehicle is getting fixed in the event of an accident. Insurance polices can be custom tailored for anyone, depending on how many features they want, but everyone needs to have, at the minimum, liability coverage.
