The Importance Of Auto Insurance

Not only is auto insurance coverage recommended for all drivers, every state in the United States requires that drivers have auto insurance coverage or another means of proving financial responsibility by law. If you are currently driving without insurance, you are breaking the law, could be subject to fines and may have your driver's license revoked along with your car's registration.

You may have got away with driving without insurance for years; however, in many states continuing to drive without insurance is getting more difficult. Many states have begun requiring insurance companies report electronically to the states DMV any policies that have lapsed or been canceled.

If you live in one of these states and your http://coveragecharacteristicsofautoinsurances.com</p ">insurance  is canceled or lapses, then you will receive a letter in the mail that gives you a certain number of days (20 in most states) to respond with proof that you had insurance that started as soon as the other insurance ended.

If you do not have this proof or ignore the letter, either your driver's license can be revoked, your car's registration can be revoked or both. If this happens, you will be required to pay a fee to reinstate the registration and/or license. In addition, you may be required to show proof that you currently have insurance that has been prepaid for a certain amount of time or you could have to file a SR-22 form.

In some states, the law requires that if a person is found without insurance for a third offence, their vehicle be confiscated and placed in a state approved impound yard for no less than 180 days. In addition to losing the use of the vehicle, the person is responsible for paying storage on the vehicle.

While this may seem like a very stiff penalty, think of the cost that could be involved if you are uninsured and the cause of an accident. Replacement cost of many new vehicles can be well over twenty thousand dollars. The cost of hospital stays, doctor's visits and therapy continues to rise. If you are found at fault in an accident, you will be held responsible for all of these expenses. If you thought you could not pay for insurance, how are you going to pay fifty or one hundred thousand dollars or even more in personal injury and property damage claims?

Yes, auto insurance coverage is recommended and required for all drivers.

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