by 
The Curious Bag
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Most drivers understand that they need auto insurance. Unfortunately, many people do not understand the many purposes that car insurance serves. There are several reasons why auto insurance coverage is important.
Liability Protection
Auto insurance provides legal protections against lawsuits if you cause an accident that results in injuries or property damage. This keeps accident claims out of the courts.
Asset Protection
Auto insurance transfers the financial risk of driving from you to the insurance company. This protects your financial assets, including investments, savings and even your home, if you cause a motor vehicle accident.
Non-Accident Protection
Full coverage policies don't just cover car accidents. They also pay if a car is stolen, vandalized, or damaged by fire or natural disaster. It also covers a collision with an animal.
Vehicle Financing
Without auto insurance, most lenders would be unwilling to finance a vehicle. This is because, the lender would have little chance of recovering the full amount of the loan if the car was damaged or stolen.
Legal Requirements
Nearly every state requires drivers to carry a minimum amount of auto insurance. Many states will not register a vehicle until the owner can prove that the vehicle is insured.
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