Do Perfect Drivers Need Auto Insurance?
If you have a clean driving record and consider yourself to be a perfect driver, you might be enticed by the idea of saving money by going without auto insurance. Although this can be tempting because it will save you money now, it could cost you significantly later.
It is also important to remember that you may be required by law to have auto insurance. In most states, you must have at least basic insurance in order to drive your vehicle. Also, if you do not own your vehicle outright, you may be mandated to have insurance.
What Does Insurance Do For Me?
Even if you are an excellent driver, you could get still get into an accident. It can happen to anyone. If you do not have insurance, you could be liable for damage to your own vehicle, any other vehicles involved in the accident, medical expenses for yourself, and medical expenses for anyone else injured in the accident. You could also be liable for any property damage that might occur as a result of the accident. For example, if you hit a house, you could be liable for repairs, which could be quite extensive.
Auto insurance provides you with financial coverage if you get into an accident. Given the above example, your insurance could cover repairs to your vehicle and the other vehicle and it could also cover medical expenses. Finally, if property damage occurs as a result of the accident, that could be covered under your insurance, as well.
If you have an accident and your insurance covers the expenses, you will probably need to pay a deductible. The deductible is a set amount that you must pay in order for your insurance to pay the remainder of the expenses. For example, if your repair bill is $3,500 and your deductible is $500, then your out-of-pocket expense will be limited to the $500 deductible and your insurance will pay the rest.
You can look at the issue as a choice between paying a monthly premium, which you can budget for, or paying a large amount in damages, hospital bills, and so on if you get into an accident. Unfortunately, you cannot budget for that because there is no way to know how much it would be. Imagine the havoc that kind of unexpected expense could wreak on your life.
Other Drivers May Not Be Perfect
Even if you are a perfect driver, it is important to remember that there are many less-then-perfect drivers on the road. If your car is parked on the street and it is struck by a hit-and-run driver, there may be extensive damage for which you, the perfect driver, bear no responsibility. Unfortunately, you will still face the repair bill. If you have insurance, your expenses will be covered after you pay your deductible. If you do not have insurance, you might quickly begin to regret it.
