Why do I need auto insurance?

Your car is likely one of the most expensive things you own. Insurance protects your investment and guarantees you a way of coping with the expense of accidents, vandalism or theft. It also secures your financial responsibility to the institution lending you money to buy your vehicle.

When you drive you are responsible for the safety of your passengers, your fellow drivers, other peoples property, pedestrians and yourself. Insurance helps ensure your ability to cover the costs of potential damages or injuries.

You are also required to be financially responsible by state laws, which are best satisfied through your insurance coverage. In most states insurance is a prerequisite to registering your car. So if you want to drive your own vehicle, you must be insured.

What parents need to know about thier teen driving with a learners permit.

In the majority of states, all drivers need to carry some form of financial responsibility and be able to prove it, in order to buy a car, register a car, or respond to a police officer if you are pulled over for a traffic violation or if you have an accident. Where insurance is required for licensed drivers, a young driver without a license must also have insurance. Typically, but not in all cases, a teen driver with a permit can get away with being covered on his or her parents’ auto insurance policy, and there is usually no extra charge until he or she gets her license. A driver with a learners’ permit must have an adult in the car at all times; this is usually a parent who owns the car and thus, carries the insurance on it. Check with your insurance agent for the company’s procedure on including a young driver with a permit on the parents’ policy.