Why Do I Need Car Insurance?

 In Insurance Advice, Tips

Do I Need Car Insurance?

Written by: Sarah Smith

Do you have to have car insurance? Do you need insurance to drive?

The short answer? Yes, it’s the law.

Every state, including Missouri, requires at least some type of car insurance coverage – be it full coverage insurance or otherwise. 1 However, there are still an estimated 32 million uninsured motorists on our roads nationwide. In Missouri, about 14% of drivers lack minimal auto insurance policies. 2

Today, we’ll go over six common reasons people give for not purchasing car insurance and why taking the time to consider your insurance quotes and getting your vehicle insured isn’t just the legal thing to do, but also a smart move for your safety and financial well-being.

#1: “It’s Too Expensive”

It can be tempting to cut corners when you’re also juggling the cost of housing, food, utilities, health care and paying down debts. But remember, a car accident is much more expensive if you don’t have insurance than if you do.

Car insurance helps you financially by covering a portion of the costs you’ll incur if you get into an accident: 3

  • Medical bills stemming from any injuries
  • Repairs to your vehicle
  • Compensation to the other driver if you’re at fault

Affordable and ‘cheap’ car insurance coverage exists. Start a conversation with your local insurance professional to get help comparing car insurance quotes and choosing the policy that works best for you and your budget.

#2: “I’m a Safe Driver”

Nobody plans to get into a car crash, but the reality is it can happen to anyone.

  • About 6 million car accidents occur in the United States every year. 4
  • In 2018, 40,000 people in the U.S. were involved in car accidents, and another 4.5 million were injured. 5

Just as wearing your seatbelt, driving within the speed limit and avoiding distractions are good ways to reduce your risk of an accident, having proper auto insurance is a good way to be prepared in the event that you do have an accident. Some providers also offer safe driver discounts that will help offset your insurance costs.

#3: “It’s Too Complicated”

One survey found that 88% of consumers feel that buying car insurance is time consuming and frustrating. 6

  • Many people feel intimidated by insurance jargon like “premium” and “deductible.”
  • Others get overwhelmed by all the different types of coverage available, and are afraid of making the wrong choice.
  • As a result, a lot of folks either don’t buy insurance at all, or they choose a policy in haste without looking at all the details, often ending up spending more than they should.

At The Resource Center, our friendly insurance professionals take the time to explain car insurance in language you can understand. We provide clear information so you can feel good about choosing the best car insurance for your situation.

#4: “I Think I’m on My Parents’ Policy”

Whether you’re still on your parents’ car insurance, and whether you’re allowed to stay on it, comes down to many factors7

  • If you currently live with your parents, you may be able to stay on their insurance.
  • You may also be able to remain on their policy if you move away to attend college.
  • If you get married, or if you move into your own place while still single, you generally must get your own car insurance.
  • If you’re living on your own, but still drive a car that is registered to your mom or dad’s name, you may be able to stay on their policy. If the car is registered to you, you must have your own policy.

When it’s time to purchase your own car insurance for the first time, speaking with an insurance professional will help you understand the process.

#5: “My Car’s Broken Down”

You may think it’s okay to completely cancel coverage on a car that’s in need of repair. Keep in mind, however, that canceling now and trying to resume car insurance coverage later could end up being more expensive than maintaining consistent coverage. 8

One option to lower your car insurance costs may be to temporarily reduce the amount of coverage on the car until you’re able to drive it again. Ask an insurance professional about comprehensive or ‘storage’ coverage while you aren’t driving the car. Comprehensive coverage protects the vehicle against hazards unrelated to driving — things like fire, vandalism, theft or weather damage.

#6: “I Don’t Drive Much”

What if you have a car but don’t use it very much? Perhaps you use a bike or a bus to get to work, and only drive on longer trips.

If this is your situation, you may be eligible for a pay-as-you-drive or ‘pay-as-you-go’ option on your policy. 9

  • Your car will be equipped with a device that tracks the miles you drive.
  • Your monthly premium will vary based on your monthly mileage, so you only pay for coverage when you’re actually using the car.
  • Keep in mind that your premium may go up if you are speeding or if you exceed daily mileage limits associated with your coverage.

If you need car insurance, but aren’t sure where to start, contact The Resource Center today. We’ll answer all of your questions, walk you through comparing car insurance quotes and help you choose the right policy to fit your lifestyle.

Sources:

  1. https://www.nerdwallet.com/blog/insurance/car-insurance/.
  2. https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics#nogo.
  3. https://www.moneyunder30.com/why-do-you-need-car-insurance.
  4. https://www.driverknowledge.com/car-accident-statistics/.
  5. https://www.nsc.org/road-safety/safety-topics/fatality-estimates.
  6. https://insurify.com/blog/car-insurance/5-reasons-drivers-dont-buy-a-car-insurance-policy/.
  7. https://budgeting.thenest.com/long-can-insure-child-auto-insurance-policy-28199.html.
  8. https://www.thebalance.com/my-car-broke-down-do-i-still-need-car-insurance-3972384.
  9. https://www.carinsurance.com/Articles/pay-as-you-drive-discounts.aspx.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Investment advisory services offered only by duly registered individuals through (AEWM). AEWM and The Resource Center are not affiliated companies. 111254

 

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