Do you drive your car regularly? If so, then you definitely need to purchase auto insurance. Car insurance coverage is required by law in most places. It also protects you from liability if you are in an accident. You need to know that the auto insurance company that you choose should provide adequate protection for your needs.

Driving without insurance is illegal in most states and can result in fines of over $5,000. Moreover, it may result in the suspension of your driver's license and the impounding of your vehicle. In addition, if you do not have any car insurance and someone hits you, their insurance company will not pay for the damage done to your car or injuries caused to you by their policyholder.

So, having car insurance is paramount. Here are other benefits of having car insurance;

Why is a Car Insurance Important?

It helps cover the costs of other people's injuries and property damage if you're at fault in an accident.

Auto insurance is a legal requirement. It's also necessary to have at least the minimum amount of coverage so you can cover another driver's costs if they're injured, or their property is damaged in an accident that's your fault.

Below are some of the main coverages included in most auto insurance policies:

• Collision coverage: Helps cover damage to your vehicle if you're in an accident.
• Liability coverage: Helps cover damage you cause to another vehicle or property. Most states require you to carry it, and there's a limit on how much your insurer will pay for using it.
• Medical payments (or personal injury protection) coverage: Helps pay for medical expenses from a covered accident for you, your passengers, and sometimes other drivers listed on your policy, even if they don't own their own cars. This can include things like hospital bills, X-rays, and ambulance rides. Some states require drivers to have this coverage.
• Uninsured motorist (UM) or underinsured motorist (UIM) coverage: Helps limit the cost of bodily injuries caused by an uninsured/underinsured driver in an accident that was their fault, as well as hit-and-run accidents where the at-fault party flees the scene before exchanging information with other drivers involved

May lower your car insurance rates over time

• Safer drivers may see their premiums go down over time. Insurance companies will typically lower your insurance rates over time if you have a clean driving record. In other words, no accidents or violations. A clean driving record can reduce the cost of car insurance by up to 20 percent.
• Good credit can translate into lower car insurance costs. If you're looking for ways to save money on your car insurance premium, it's worth checking your credit score and working to improve it if necessary. In most states, insurers are allowed to consider an applicant's credit history when determining their premium rates. The reasoning is that a person's credit score reflects their level of responsibility, so those with higher credit scores tend to be less risky policyholders who deserve lower rates.
• Lower annual mileage could earn you a discount on auto insurance premiums. Insurance companies typically charge higher premiums for people who drive more miles than average because they're at greater risk of getting into an accident while they're behind the wheel. On the other hand, if you limit the amount of time you spend on the road each year through telecommuting or public transportation use, you might qualify for a low-mileage discount from some insurers.

It helps pay for damages to your car if it's stolen or vandalized.

• Insurance protects you from costs related to your car being stolen or vandalized.
• Insurance companies can help you track your car if it's stolen and may help you get back on the road quickly.
• If your car is not found, insurance companies will compensate you for the value of the car based on its current market value or book value, whichever is lower.

Caters for expenses if your car is damaged by something other than a collision, such as fire, hail, or flood damage

Comprehensive insurance helps pay for expenses if your car is damaged by something other than a collision, such as fire, hail, or flood damage.

This kind of coverage helps protect you from unexpected accidents, like when your car gets stolen or set on fire. It also can cover vandalism, hitting an animal, and hitting an object (such as a building).

• Collision insurance helps pay for expenses if you hit another car or object (like a telephone pole) or another car hits you (or your parked car).
• If your car is parked and gets hit by another vehicle, it's likely that the driver causing the accident doesn't have enough insurance to cover your damage. In this situation, comprehensive coverage will help pay for the damage to your vehicle.

It can help lower your liability risk associated with medical bills from a car accident.

Even if you're not at fault in a traffic accident, you could still face an onslaught of medical bills as a result. Car insurance can help pay for medical care and other costs associated with a traffic accident.

Medical payments coverage and personal injury protection are two types of car insurance coverage that can be added to your policy to help pay for medical expenses following an accident, no matter who is at fault. These optional benefits may also include reimbursement for lost wages, funeral costs, and pain and suffering.

Car insurance protects you from financial hardship if you're ever in a collision or suffer other significant vehicle damage

It does this by paying out for repair costs, medical care for you and your passengers, and for any other damage, you or your car might cause to other vehicles or property. If your car is damaged in a way that makes it unsafe to drive, then your insurer will also pay for a rental car until yours is repaired.

Finally, in addition to covering damage caused by collisions, most auto insurance policies also offer coverage for certain other types of accidents. Policies usually include liability protection that covers the policyholder's legal liability arising from accidents like hitting someone else with the car or damaging someone else's property with the car. Most policies also cover theft of the vehicle and vandalism to it. Some coverages also offer protection against natural disasters. These include comprehensive and collision coverages, which are optional on many policies. That said, make sure you have car insurance!