If you have ever wonder why driving insurance is so important, there are many different reasons. Having car insurance today is not only mandatory in all fifty states, if you are driving with no insurance, you are a danger and a hazard to not only yourself and any passengers in your vehicle, but to other drivers. It doesn’t matter is you have a driver’s license, you have to have driving insurance as well, and in fact, if you finance a car, you are required to carry full coverage insurance for the duration of the loan. If you don’t, lending companies can even repossess your vehicle.

Driving insurance protects you in a number of ways. It you ever get into an accident, whether you are at fault or someone else, insurance covers damage to your vehicle, the vehicle that you were involved in the accident with, as well as passengers. If your vehicle was involved in an accident with motorist driving with no insurance, you are still covered, even if they are not. In the event where there is an accident involving just yourself, like if you drive off the road due to adverse driving conditions, whatever damage incurred is covered by the insurance company.

While the laws and penalties differ from state to state, and this also depends on the percentage of drivers who are uninsured for each state. People driving with no insurance can face a multitude of fines, and possible jail time, or even have their vehicles impounded. In Massachusetts for example, if you are caught driving without insurance, you can be charged anywhere from $500, all the way up to $5,000, and go to jail for a year. In Florida, not only will you be fined, but your vehicle will also be impounded, and this alone can cost hundreds even thousands of dollars, depending on how long it takes for you to claim your car.

Each state requires different driving insurance minimums, most states require that you are covered against accidents to you and other drivers, coverage for medical expenses, as well as others driving with no insurance. While this ends up to spending at least $1,000 a year to insure your vehicle, there are many factors involved. One of these is your driving record. If you are at high risk, have a lot of traffic violations, been caught driving with no insurance or have DUI’s, this raises your rates. SR22 requirements can incur higher rates as well. The age of your vehicle, what kinds of safety features like anti lock brakes you have, and your age are also factors in determining what your rates are.

For example, young drivers without a lot of experience behind the wheel can expect higher driving insurance rates. This is caused by the fact that young drivers have up to fifty percent more accidents than older drivers. There are programs for young drivers that can improve these rates, such as extra driver’s training courses, and some that credit students for having good grades. These vary from state to state but it is a good idea to check into it. There are many different driving insurance companies available, and each have different rates. In order to get the best deal for your budget, it is a good idea to shop around.

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