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Why You Need Auto Insurance


Auto insurance is required by law in almost every state. Even if you live in a state that does not require you to purchase insurance, you must still show that you will be financially responsible in the event of an accident. A couple of states that do not require the purchase of insurance require that a cash bond be posted to cover damages.
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Financial Responsibility

If you are in an automobile accident that is determined to be your fault, your liability insurance typically pays for the other person's injuries and damages to their vehicle. Without this coverage, you will be responsible for their medical expenses as well as lost wages. If your insurance limits do not pay the entire amount, you are still responsible for the difference.

When Your Vehicle is Financed

If your vehicle is financed through a bank or other type of loan company, they will require that you have insurance. This protects their investment as the lien holder. In addition, this coverage is beneficial if your vehicle needs repairs or is a total loss and will need to be replaced. You will not be without a vehicle if the damage is covered by your insurance. Commercial Coverages, Inc. is an example of a company offering auto insurance palm coast fl.

Uninsured Motorists

Although liability insurance is required in most states, uninsured motorist insurance is not. However, it is a good idea to carry this type of insurance. Many drivers do not have insurance. If they cause an accident, an uninsured motorist policy will take care of the costs that would have been paid by the other driver's liability insurance. Rather than take chances, if you are in an accident caused by a driver that does not have insurance, carrying uninsured motorist will protect you for costs up to the limits of your particular policy.
These are just a few of the reasons why you should have at least the minimum coverage required by your state. If you are involved in an accident that is determined to be your fault, you could end up paying for damages and medical costs for many years without insurance to cover these costs.
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