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Do you need insurance to drive a car?

In a word, Yes.

Without the current insurance mandates, driving would be hazardous to your pocketbook. Accidents and fender benders could keep you off the road while you scrounge up funds to fix your car, even if it wasn’t your fault.

Medical bills that arise as a result of an accident would be overwhelming. Because of insurance, most people who get into an accident find that the car is repaired quickly and that they can get on with their life.

Every state requires its motorists to carry at least a minimum level of auto insurance coverage. This way they can meet their financial liabilities to other drivers, passengers and property owners in the event they cause an accident. Insurance covers both the actual damage to vehicles and property. It also covers medical expenses arising from any injuries.

There are 12 states that require drivers to purchase additional no-fault insurance.

In these states, each driver receives compensation from their own insurer, regardless of which party was at fault – unless the injuries are serious enough to be an exception.

If you are borrowing someone else’s car, the car needs to be insured, even if you don’t have your own policy. If you are borrowing a friend’s car and you get into an accident, the friend’s insurance will provide financial protection when you’re driving it. This type of coverage is often referred to as third-party coverage.

Every state requires a minimum amount of liability coverage or some proof of financial responsibility. If you are caught driving an uninsured car, you’re going to face penalties even if you’re just borrowing it.

Every state has its own laws. But it is not uncommon if someone drives without a license and got into an accident, they can lose their license, or get slapped with a fine or sentenced to few years in jail. This is no joke.

If you are not insured to drive a car, regardless of who the owner is, then you are financially responsible for all damages resulting from an accident or any other incident.

Driving without liability insurance is against state law and will result in fines and a possible jail sentence.

So be smart, and call your insurance agent today to make sure that your coverage is up to date.

Get more of these tips in our regular newsletter.

Published in Auto Insurance

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