Reasons to Get Car Insurance
Next to buying a new home, getting a car will be the biggest purchase and investment that you will ever make. Due to the size of the purchase of a car, it would be a good idea to ensure that you and your car are properly protected. There are several reasons why you should purchase car insurance.
Required By Law
One of the main reasons why you should get car insurance is that it is required by law. Due to the risk that comes with driving, most areas require that you have some level of auto insurance in order to drive a car legally. Normally, the base level of requirements by law are low and only require you to have collision and medical coverage. This will provide you with coverage in the event you are at fault in an accident or if someone is injured.
Requirements of Lender or Lessor
If you are leasing the car, or have to take out a loan to buy the car, you will likely have other auto insurance requirements as well. These parties are concerned that the car is covered entirely during the term of the loan or lease. Because of this, they will likely require you to have comprehensive coverage as well. This type of coverage will provide you with coverage in the event that you are involved in an accident with someone that doesn’t have insurance or the car is vandalized or stolen.