Car Insurance: Why do I need it?

In some states, to drive (get license plates) you must carry:
  • Liability coverage to pay for losses you cause others, or:
  • No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault, or
  • Both coverages.
Even in states where coverage isnít required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.

Without insurance, you risk paying for the full cost of:
  • Any harm you cause others, or:
  • Repairing or replacing your car if itís damaged or stolen.