Do you need auto insurance? The short answer to this question is yes; you need auto insurance if you’re going to drive. Whether you drive every day or occasionally, chances are this is an insurance you’ll need. We’ve compiled the different reasons you most likely need auto insurance, and also added a tool you can use to find the best rates in your area.
Is Auto Insurance Mandatory Where I Live?
Unless you live in New Hampshire or rural areas of Alaska, you’re required by law to have insurance to drive legally. Those two states provide some exceptions but you’d still be personally responsible for any accidents you cause.
Most people choose to have insurance not just because they’re required by law but because it protects them in case of an accident. You can also protect yourself if you get in an accident with an uninsured motorist. About 1 in 8 drivers don’t have insurance.
If you’re one of those that don’t have insurance, you can face substantial fines if you can’t provide proof even if you don’t get in an accident. You can have your license suspended and your car impounded. If you get in an accident, you’ll pay for everything out of pocket.
Do I Need Coverage if I Don’t Own the Car?
If you’re driving a friend’s car and get in an accident, their auto insurance policy may provide coverage. You’ll be responsible for paying for anything their insurance doesn’t cover and you may rack up legal bills if the insurance company or an accident victim decides to sue you personally.
Insurance companies offer non-owner car insurance policies that are at lower rates. If you’re driving someone else’s car regularly, it’s worth consideration since you may be liable if you get in an accident while you’re driving someone else’s car. While these policies typically don’t cover physical damage or any medical attention you need. They will, however, cover medical expenses of people in other cars that are injured.
If you’re renting a vehicle, the rental company is going to want to see proof of insurance before handing you the keys.
Do I Need Auto Insurance When I’m Traveling?
Your current car insurance will cover you for trips out-of-state as long as it’s not for long-term stays. If you don’t have insurance but plan to drive while traveling, you’ll need to be insured.
If for any reason you’re traveling internationally, though, you’ll want to check with your provider first. You won’t be covered in most cases.
Do I Need Coverage When Driving for Work?
If you’re using a company vehicle for work, you’ll want to have auto insurance in case you’re at fault. Depending on the situation, your employer’s insurance may not cover you. If you’re an independent contractor or a gig worker, you’ll also want to be insured.
If you’re driving for a ridesharing service (Uber, Lyft, etc.) or an independent contractor for a delivery service (Uber Eats, DoorDash, GrubHub, etc.), you’ll want insurance coverage as well.
How Can I Save on My Auto Insurance?
Insurance companies want to build long-term relationships with customers. They know if you have multiple products, such as cars and homes, or rental insurance, you’re more likely to stick around longer. They’ll offer discounts when you bundle multiple insurance coverages.
You may also qualify for insurance rate discounts if you:
– Limit your mileage
– Stay accident-free / Good driver
– Pay annually
Some companies will also provide discounts for students, seniors, and the military.
How Can I Find the Best Deals Near Me?
One of the best ways to shop for auto insurance is to use Jobble Auto, a free service that lets you view and compare auto insurance offers in your area. You can easily get and compare free quotes for local deals, putting all of the information you need right at your fingertips!
About the Author: Paul Dughi has an MBA in Business Administration and has held executive management positions in the media industry for the past 30 years. He is an Emmy® Award winning Producer/Writer and has authored two books on Marketing, Management, and Sales. You can find him on WriterAccess.