When you’re driving your car, you may be wondering: do I need insurance? The answer is complicated, but in a nutshell, the law says you do. So if you’re IN a car, you have insurance. And even if you’re not IN a car, you may still have insurance depending on the circumstances. The bottom line is that it’s always safest to be covered – even if you don’t think you need it. That’s why here at The Better Business Bureau we want to help consumers understand their options when it comes to auto insurance. We’ve put together a few blog posts that will help demystify the topic for you and provide tips for finding the best coverage for your needs. So read on to learn more about what auto insurance is and whether or not you need it.
What is Insurance?
Insurance is a contract between an insured and an insurance company. The insurance company agrees to pay out a set amount of money, called the policy limit, in the event that someone is injured or loses property as a result of something that they do while they are insured.
Most people require at least liability insurance in order to legally drive a car. This type of insurance covers you financially if you get into an accident and are found guilty of causing it. You will also likely need property damage liability insurance in order to cover your financial losses if someone else damages your car while you are not driving it.
There are other types of insurance that may be useful for drivers, such as uninsured motorist coverage, which helps pay for damages you cause when someone else who does not have insurance hit you while driving.
Types of Insurance
There are a few different types of insurance you may need if you want to drive a car. The most important type is liability insurance, which protects you from being held liable for accidents that occur while you’re driving. You also may need property insurance to protect your belongings in the event of an accident, and auto insurance to cover any damage to your car.
When Do You Need Insurance?
If you are a driver in the United States, you need liability insurance. This type of insurance protects you from legal action if someone is injured or property is damaged as a result of your driving. You also need property insurance to protect your possessions in case of a loss while you are not using them.
While it may seem like you don’t need insurance to drive a car, there are some situations where it is smart to have coverage. For example, if you are involved in an accident and the other driver doesn’t have insurance, your vehicle could be taken away from you and you might not be able to afford to buy another one. Additionally, if you get into an accident while driving without insurance, the law considers that you are at fault and can take legal action against you. In most cases, though, having proper car insurance is a good idea no matter what.