5 Reasons Why You Shouldn’t Cancel Your Car Insurance

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5 Reasons why you shouldn’t cancel your car insurance

To Comply With State Laws

Car insurance is legally required in most states. At a minimum, drivers must purchase liability coverage with state-mandated bodily injury and property damage limits. If you cause an accident that injures someone or damages their property, liability coverage may help pay for the other person’s losses.

To Satisfy Loan or Lease Requirements

If you’re financing or leasing your vehicle, your lender may require you to purchase collision and comprehensive coverage. Since the lender or leasing agent is the lienholder of your vehicle while you’re making payments, these two coverages may help protect their investment. Comprehensive or collision coverage may help pay to repair or replace the vehicle if it’s damaged in a covered loss.

To Help protect your finances

If you cause a car accident, you may be held responsible for costs associated with it. These may include legal fees, the injured person’s medical expenses or their lost income compensation. Liability coverage may help pay for these costs. Without liability coverage (or adequate liability limits), you would likely have to pay these costs out of your own pocket.

To Help Protect your Passengers

Medical payments coverage and personal injury protection may help pay for your medical bills if you’re injured in an accident. And it also may help cover your passengers’ expenses due to the accident. Coverage may help pay for hospital visits, doctor bills and surgery.

To Help Protect Yourself

Even though liability coverage is a legal requirement, many people drive without it. Uninsured motorist coverage may help pay for your medical bills if you’re hit by a driver without insurance. This coverage is required in some states and optional in others.

What Is Uninsured Motorist Coverage?

Having the proper car insurance coverage in place can go beyond fulfilling a legal requirement. A car insurance policy may help protect your vehicle, your wallet and even offer peace of mind. Talk to a local agent, who can help you choose the coverage that’s right for your needs.

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