In today’s uncertain economic times, people are driving less. They also are trying to save as much as they can on expenses, including their auto insurance. You might feel tempted to let your coverage lapse if you no longer drive. However, that’s the wrong decision. You might face severe financial penalties if you ever let your vehicle go uninsured. Consider why it is so important to always keep your coverage active.
Having an Uninsured Car is Illegal
Most states require drivers to have certain types and amounts of car insurance. Drivers who fail to carry it will face penalties. If you get caught driving without coverage, then you might face vehicle impoundment, license suspension or revocation of your registration. It’s much easier to pay your premium than to face an unexpected reinstatement fee.
You Leave Yourself Financially Exposed
If you don’t have car insurance, you won’t have a source of financial help in case of a wreck or other vehicle hazard. You might think you can handle the repair costs on your own.
However, there is a lot more to vehicle damage than often meets the eye. After a wreck, not only might you have to pay for your own damage, but you might also have to pay for your medical bills. If the wreck was your fault, then you might even have to pay for the damage you caused to others. You could even face a lawsuit.
Active, appropriate car insurance can continue to assist you long after you leave the site of a wreck. Not having it will equal no protection at all.
You Won’t Protect the Car’s Value
If your car sustains damage, then that damage could harm its resale value. That’s why it is imperative to repair and restore the vehicle. Car insurance is a great asset to have because it will help you do so.
Car insurance is so important to protect vehicle value that auto loan companies often require buyers to get covered. They usually mandate comprehensive and collision damage insurance. These specific types of coverage will help you repair your car and thus protect the bank’s investment in it.
Damaging your car is an inconvenience. However, you don’t want to face an even bigger challenge because you have no car insurance. Your policy can help you avoid legal penalties and create an avenue to repair your vehicle. As long as you keep paying for your policy, you will have an outlet to cope with these accidents.