In all 50 states, auto insurance is mandatory for any driver on the road. However, many drivers still do not appreciate the importance of this coverage. According to the Insurance Research Council's interview on National Public Radio, the rate of uninsured drivers in the United States was to hit 16 percent in 2010 due to the recession and unemployment. According to the interview, each time unemployment increases 1 percent the percentage of uninsured drivers on the road also increases about 1 percent. The consequences for these drivers and for others sharing the roads with them could be serious.

The Legal Issue

Minimum amounts of insurance are required in each state. Not having the minimum could subject you to fines ($150 in South Dakota) and suspension of your driver's license and/or automobile registration (Arizona).

The Liability Issue

If you cause an accident in any tort state, you will have to pay for the injured party's medical bills, lost wages and pain and suffering. Without insurance, these costs can be a hardship for any family. In a no-fault state, you may be left to pay for your own medical bills and missed work.

Considerations

Opting for more than the minimum requirements should also give you peace of mind. If your car is vandalized or damaged by another driver, comprehensive and collision coverage will cover the bills minus the policy's deductible.

Costs

Although not purchasing auto insurance may seem to save you money, in the long run it will be more expensive. Besides the costs of penalties and fines for driving without insurance, you will have to pay more in premiums later because you did not maintain continuous coverage on the vehicle. Insurance companies view this as risky.

The Extras Issue

By purchasing some types of car insurance, you can opt for roadside assistance. This covers the costs of having a tow truck or other service come to you if your car breaks down, tires go flat or experience other problems while driving. Discounts on other types of insurance coverage and car rental during the period your car is repaired are other optional auto insurance extras.

Source:

Ampminsure.org

Auto Insurance Remedy

NPR: Study Predicts More Uninsured Drivers On The Road