Family Auto Insurance
“Because the law said so” this is probably the default answer when someone asks why we need to purchase auto insurance. The truth is there is an individual mandate for auto insurance. Whether we want to or not, we need to get auto insurance. Here are the five reasons why there is an individual mandate.
Car Accidents Are Ruinous
Consider the following expenses involved when in a car accident:
Car insurance will at least help with actual damages and car repairs. A sudden accident can be financially ruinous.
Even worse it can be ruinous to health. Imagine hitting someone and causing to spend extended time in the hospital. By law, the person who caused the accident must compensate the victim.
Unlike health insurance, car insurance covers others or more accurately speaking it covers potential harm to others caused by the vehicle. Again, due to medical costs associated with traumatic injuries having that car insurance might be the difference between bankruptcy and solvency if you are unfortunate enough to get into an accident.
Most People Will Go Without It
As with health insurance, people try to scrimp on car insurance. It means they will forgo it if they could. If there was no mandate to get car insurance, then a lot of people will probably avoid getting it.
Since they don’t see the value of car insurance, until an accident hits, they don’t think they need it.
Insurance Death Spiral
Car insurance is affordable because almost everybody has it and they are grouped into “risk pools”. Ordinary drivers pay low premiums because they are safe drivers and there is a low risk of them causing accidents. It means that even if a regular driver gets into an accident, the cost of paying his bill is spread over a vast pool of fellow drivers.
Part and Parcel
The best way to see car insurance is that it is part and parcel of buying a car because that is the truth. Car insurance is there to provide security. The better your car insurance, the better you can sleep at night, so maybe it is worth it to get better than the basic plan.
At Family Auto Insurance Agency, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (313) 285-9042. Get your free quote today by CLICKING HERE.
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Family Auto Insurance Agency
6442 Michigan Ave
Detroit, MI 48210
Lincoln Park Office:
3205 Dix Hwy
Lincoln Park, MI 48146
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