Driving without car insurance is a huge risk. It makes both you and your financial security vulnerable.

In most states, it is illegal to drive without a minimum level of auto insurance. For this reason alone, it is highly suggested that you enter your zip code and compare car insurance rates immediately!

Further, there are many benefits you receive by carrying insurance on your vehicle, including peace of mind and financial security.

What are the consequences of driving without insurance?

Almost all states require you to have a minimum amount of insurance coverage. In the states where it is not required, you must provide proof that you would be able to pay in the event you were in an accident. These are called financial responsibility laws, and generally start at $25,000.

In the event you are stopped by a police officer, through a routine traffic stop or even a checkpoint, and you can not prove you have auto insurance, you can face a variety of consequences, from fines, to license suspension, to time in jail.

Even if you are a good driver, you cannot rely on other drivers and there may be a time when you are in an accident. Further ramifications of not having insurance include the seizing of your vehicle registration tags, as well as car impoundment.

Since most people do not have the ability to be without a vehicle due to a license suspension, or pay tens of thousands of dollars after an accident, a monthly payment towards insurance seems to be a much better option than taking the risk.

What are the benefits of auto insurance?

First, it is always recommended that you read your policy thoroughly so that you are aware of the different benefits and what is covered. Depending upon the policy, it may cover:

• Windshield chip repair
• Reimbursement for a rental car in the event of an accident
• Or even other people who drive your car

Each policy is different.

The benefits of car insurance are many; it can cover others if you are deemed to be at fault for the accident, including their vehicle damage and medical bills. The costs for these can skyrocket instantly and, if you are without insurance, you may find yourself unable to fulfill your financial responsibility. This opens you up to a variety of issues including potential lawsuits and credit problems.

There are different types of car insurance and each provides you with varying coverage. Bodily injury liability will cover others if you are in an accident and determined to be at fault. Property damage liability will cover the property of others in the event you should be responsible for the damage.

These are the two types which cover the minimum insurance requirements; however, you can also request collision coverage which will cover your own car. The previous two types do not cover your own vehicle, which is why it is advisable to consider collision coverage as well when purchasing insurance.

Comprehensive coverage will cover almost anything that happens that is not due to a collision. For example, if your car is stolen or catches fire, it would be covered under a comprehensive insurance policy. You can also purchase protection against other uninsured or underinsured motorists in case they are unable to fulfill their financial responsibility to you in the event of an accident.

Ultimately, the point of car insurance is to protect you. It limits your liability and can protect you against fraudulent claims of other drivers.

How much will car insurance cost?

Insurance rates will vary based on many factors. One of the most important factors in determining how much your insurance will cost is your driving record. If you have a good driving record, without traffic violations for example, you will pay a lower rate than if you have multiple traffic tickets. Furthermore, completion of an approved driving class can often lower your policy rate. This varies by insurance company, but it is worth researching.

The type of car you would like to insure will also impact your insurance rate. If you are insuring a faster, sportier car, you will inevitably pay more than if you are insuring a minivan. To find out the safety rating of your car visit Safercar.gov, a division of the National Highway Traffic Safety Administration (NHTSA).

Car insurance rates vary greatly, but this is an expense you can’t afford to drop from your budget. For more information about car insurance and rates, enter your zip code and compare car insurance rates now!