Regardless if you live in Hamilton county or not, this is a good read. Far to many people don’t understand the basics of car insurance and are overpaying for their auto insurance. Really recommend you read my quick blog/ article post below.
How it all began
It all started when I decided to change my car insurance. I was looking for a very cheap no deposit car insurance, which I found at: http://www.autoinsurancemonkey.com/very-cheap-car-insurance-no-deposit-quotes . My thoughts started moving in all directions and quickly moved from the logical to the illogical and so on. Perhaps the very first thought which came to my mind was, “Why do I need car insurance at all?” One thought led to another and I was able to think up quite a bit in regard to the main question. I share here some of my thoughts.
Why do I need car insurance
It is common knowledge that we take a car insurance policy for the following main benefits in case of a road collision or accident:
- To provide financial compensation to any third party or person who might have suffered some injury or losses to his vehicle or property due to the mishap.
- To provide financial compensation, as per specified limits and conditions, to the person who has taken the insurance policy to cover the expenses incurred on putting his car in the pre-accident position to the extent possible and also provide compensation for injury to the driver or the other occupants of the car, as applicable.
In addition to the above, a comprehensive car insurance policy also provides to us protection against damage from various other sources as well including fire, floods, earthquake, other natural calamities and acts of God, this is sometimes referred to as a full coverage car insurance policy.
Is car insurance mandatory
In the United States, car insurance is mandatory in most states though each state has its own rules governing the policy in this regard. In a few states including Alabama, Iowa, Mississippi, New Hampshire and Pennsylvania, it is not mandatory to have car insurance. In these states, you are required to furnish to the state a bond, cash deposit or approved self-insurance so as to cover damages in case of an ‘at-fault’ accident. In other words, they have their own respective ‘financial responsibility’ laws in place of mandatory car insurance.
In the states where car insurance is compulsory, proof of such insurance is required to be produced at the time of vehicle registration. The state may also provide for carrying such proof of insurance in the car at all times. Any failure to do so would often be punishable with a fine.
Though my efforts at finding a very cheap – no deposit car insurance did not yield any positive results, they left me fully convinced that it is imperative that I have a valid car insurance at all times for the car which I drive in routine for work and leisure.