Why Should I Keep My Auto Insurance?

​For many people, the value of automobile insurance is not immediately evident, particularly if you're a new car owner and driver. 

Nonetheless, car insurance provides you with protection in the event of an accident. You may not know how your auto insurance premium is protecting you, your family, and your vehicle. Despite not always being able to control whether an accident happens or not, you can be protected with an auto policy.

So if you are considering canceling your insurance, here are some reasons why you might reconsider.

Importance of Having an Auto Insurance
1. It Assures Financial Liability
If you cause a vehicular accident, you may be held liable for the costs involved. These can include legal bills, medical costs, and lost wages if the accident victim cannot work due to injury. These expenses may be covered by liability insurance. You'd have to pay these charges yourself if you didn't have liability insurance (or acceptable liability restrictions).

2. Coverage for Driver and Passenger Liability
Driving without insurance coverage is risky for you and your passengers.  Nonetheless, car insurance benefits include personal accident coverage up to a certain level. 

This premium could protect you from permanent total disability and death due to an accident. Not only that, for a predetermined cost under your auto policy, it could also cover other passengers in your vehicle (limit according to the car's maximum seating).

As a result, availing of auto insurance will help you drive on the roads at ease.

3. It Guarantees Repairs and Replacements
An insurance adjuster assesses the extent of the damage in an accident. They also determine whether the vehicle should be repaired or replaced.

Even though you own your car, comprehensive and collision coverage on your auto policy may be beneficial. While liability insurance is legally required to cover damage done to another driver's vehicle, it's also necessary to have coverage for your vehicle.

In short, even if you’ve caused damage to your car or someone else's, your insurance may cover the expenses for the compensation whether you need repairs or replacements.

Can I Just Stop Paying For Insurance?
Sometimes individuals who can no longer afford their premiums cut costs by skipping payments, unaware of the repercussions. 

If you stop paying your premiums, your car insurance will lapse or be canceled. As a result, you will certainly face financial consequences such as the following:

• The next time you apply for new insurance and insurers discover that you've had a history of not paying your premiums, you'll be labeled a high-risk client.
• Even if it's just a temporary lag in payment, you may be charged administrative fines by the DMV in several jurisdictions.
• As some states require drivers to get their car insurance, there's a possibility that your car registration or even your driver's license will get canceled.
• Even though it's just for a short time, you will almost certainly experience a rise in rates during the renewal of your insurance rates.
• Your credit score may drop, which is a necessary factor for getting loans or a credit card. 

Conclusion
Stopping your payments or coverage is a mistake and it could cost you huge money in the long run. So it's better to pay bit by bit for your premiums instead of having unnecessary stress in your life caused by canceling your auto insurance. 

On top of that, keeping your vehicle policy intact will not only save you money but can also save others from financial ruin.

At Family Auto Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (313) 285-9042. You can also request a free quote by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agency to go over your existing coverage. We are happy to help you make sure your needs are being met!