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Do I really need insurance to drive??

NO! Most states require you to have auto liability insurance. If you do not have auto liability insurance, you can face loss of license, fines, or possible jail time. All states also have financial responsibility laws. Even if a state does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you do not have enough assets, you must purchase at least the state minimum amount of insurance.

States vary as to the minimum amount of insurance required. Many times the minimum amount is not adequate to cover the costs associated with an accident. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident. Because insurance exists for your protection, it is wise to consult with an insurance agent to make sure you have the right coverage to safeguard your assets.

Last Modified: Sunday 21st February 2010

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