What’s The Point of Auto Insurance? This is a common question. Believe it or not, many drivers may underestimate the importance of carrying an active auto insurance policy. These three facts underscore how serious most states take auto insurance policies so don’t get caught without it.
3 Facts Explaining the Point of Auto Insurance
Fact #1: Most states require that drivers have auto insurance. In many states, even teenagers with learner’s permits are required to have auto insurance coverage.
Fact #2: In the state of North Carolina, if you are caught driving without an active auto insurance policy, your license plate will be confiscated on the spot.
Fact #3: Also, in the state of North Carolina, you are fined if your insurance policy lapses for even one day. You are then charged an additional fines for each additional lapse.
Rather than looking at auto insurance as a burdensome requirement and another rule that must be followed, it may be worth considering the benefits- most importantly that you are covered in the event of an accident, theft or vandalism. Furthermore, your vehicle is a personal investment that you likely want to protect.
Not to mention, an auto insurance policy will cover your medical bills after an accident. It may also cover damages to the other person’s vehicle and their medical expenses in the event an accident is your fault. Otherwise, you could be personally obligated to cover such expenses if you drive without insurance and end up having an accident.
If you take nothing else away, please protect your vehicle, health and driving credibility by maintaining consistent auto insurance coverage. The benefits far outweigh the risks. The point is…you will not regret it.