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Do You Need Car Insurance?

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You will always be required to have car insurance if you own or drive a vehicle. In some instances, though, you might wonder if you still need it.

You do not own a vehicle

You might think that not having your own car will spare you from the need of car insurance. However, you will still need car insurance if you are a licensed driver. No matter what the reason is for not having a car at the moment, you may need insurance for a number of reasons. Perhaps, you drive someone else’s vehicle, and you might be held liable in case you met an accident. You may also need insurance to cover for medical costs if you got injured. Also, if you have car insurance today and you pay for it diligently, you can avoid high interest rates the next time you purchase insurance for your new vehicle.

You lease a car

When you’re leasing a car, you do not legally own it, but still, you have to be fully insured while it is in your possession. In addition, car lease often requires gap insurance, which protects you against the depreciation loss of the vehicle against what is owed.

You can’t afford car insurance

Having a tight budget is not an excuse to disregard getting an insurance policy. The belief that you can save money by ditching your insurance is not true. Not only driving without insurance is against the law, but you won’t have protection against traffic violations and accidents, which would leave you wishing you had insurance in the first place.

There are ways to save money on insurance without eliminating it completely. By comparison shopping, avoiding extras, and reducing your coverage to a minimum, you can actually save a good deal. In addition, if you don’t own a car but you drive another vehicle, you can have yourself added as a driver to a relative or friend’s policy or purchase non-owner car insurance for cheaper costs.

You are sick and can’t drive

Being sick or disabled doesn’t free you from the need for car insurance. It is important to maintain your vehicle’s insurance and enlist your drivers appropriately to obtain the necessary medical coverage in the event of accident.

You haven’t found a replacement car yet

If you sold your car and don’t have a vehicle at the moment, you still need to keep your insurance. Rather than cancelling your policy, you’ll realize that it is better to lower your coverage to minimum and keep up with your payments so you won’t risk lapsing your policy when you finally find a replacement. Another option to cut costs is to list yourself as driver on a family member or friend’s policy.

You are deployed in the military

Technically, military personnel deployed overseas are not required to have car insurance. If you left the family car at home and your spouse or another family member is driving it, the car definitely needs to be insured.

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