Why Do I Need Car Insurance?

 In Insurance Advice, Tips

Why Do I Need Car Insurance?

Written by, Sarah Smith

The short answer? It’s the law.

Every state, including Missouri, requires at least some type of auto insurance coverage. But there are still an estimated 32 million uninsured motorists on our roads nationwide. In Missouri, about 14% of drivers lack minimal car insurance. 2

Today we’ll go over six common reasons people give for not purchasing car insurance and why 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 typically 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

#2: “I’m a Safe Driver”

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

Just as wearing your seat belt, driving within the speed limit and avoiding distractions are good ways to reduce your risk of an accident, having insurance is a good way to be prepared in the event that you do have an accident.

#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, and end 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 the policy you choose.

#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. But 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, as noted above, and choose the best policy for your needs and budget.

#5: “My Car’s Broken Down”

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

One option may be to temporarily reduce the amount of coverage on the car until you’re able to drive it again.

Ask 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 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 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 and help you choose the right policy.

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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