Car Insurance is important
Most States have laws regarding car insurance. The State of Texas says you must have car insurance to even get a car registered to your name. If you go without you still have to pay for damages incurred in an accident. In addition you could be fined or even get your driving privleges suspended. It is just not worth the cost!
Every State sets limitations on what type of coverage is a minimum. But it must pay for damage to property and medical. Texas law states a driver must carry at least 25/50/25 in liability coverage.
There minimum limit must include $25000 for bodily injury or death (1 person) and $50000 for 2 people. And it must also have $25000 for damage and destruction of property. All of these limits are per accident. There limits do not cover damages for yourself, it is up to you to add that coverage.
If damages exceed the limits you would still be responsible for the additional expense. Many insurance companies recommend more coverage for this reason. The States minimum is just that a minimum and often not enough.
You are not required to carry Comprehensive coverage, but sometimes if you have a lien holder they require you to. As long as they remain part owner they want the vehicle protected from loss. You should add comprehensive if you would like to protect yourself as well.
How would you like to lose the privealege to driver? Do not follow your States requirement and your wish may be granted. Fines could be as much as $1000 depending on whether it is a 1st offense or 2nd or 3rd. You could have your car towed and that means even more money out of your pocket for fun.
You can also expect to pay a surcharge to the Department of Motor Vehicles for up to 3 years. These surcharges can be pretty hefty. They take failure to maintain financial responsibility very serious. So yes, you could expect to lose money over the course of 3 years.
It is important to maintain auto insurance. For many reason. The ones listed, plus they fact that violations increase your insurance premiums, just making it more expensive to maintain coverage. It is such a waste of your hard earned money.
Tags: liability insurance, Auto Insurance, Car Insurance, Insurance