Financial Advice

Five Reasons Why Auto Insurance Is Critical

When it comes to driving without insurance, are the risks worth it? Here are five reasons you should never get behind the wheel without auto insurance.

Published Jan 30, 2019 | Updated May 8, 2024

The next time you are sitting at a traffic light, take a look around. It is likely that at least one of the drivers in traffic with you is driving without auto insurance. The Insurance Research Council says one in eight drivers nationwide has no auto liability coverage. And in Texas, the numbers are even higher: as much as 25% of drivers are uninsured.

So why should you be covered when you get behind the wheel? The importance of carrying good insurance coverage is difficult to convey. The fact is, many people don’t realize just how important it is until they need it. But to keep it simple, we’ll offer five practical reasons that automobile insurance is a must-have.

It’s the Law

All states but one (New Hampshire) require drivers to have auto liability insurance to legally drive. Get caught driving without insurance in Texas, and you can get ready to pull your checkbook out. You’ll pay an initial fine of $175-$350, but that’s just the beginning. You also will pay an extra $250 per year for three years to renew your driver’s license. On top of that, the Texas Driver Responsibility Program adds surcharges that must be paid or you’ll risk losing driving privileges. In addition, your car can be impounded at the scene, in which case you’ll rack up impound fees on top of finding alternative transportation. And fines jump significantly for repeat offenders.

For more information about how to insure your home or property, contact us at (512) 421-8100 or (800) 223-4197.

Accidents Can Be Costly

If you are at fault for a traffic accident, an auto insurance policy is there to protect you. Repair costs for a seemingly minor fender bender can quickly run into the hundreds of dollars. And even more concerning are the costs of potential liability, should another driver be injured. Car accidents result in more than 2 million injuries every year in the US. If you carry automobile insurance, your first step when an accident occurs should be to call your insurance company. Who handles payments for medical expenses, repairs, and other claims? No insurance? You could face significant costs and potentially be sued for an injured party’s medical care, pain and suffering, lost wages, and vehicle repairs.

It’s a Way to Protect Your Investment

Comprehensive and collision coverage take life’s unpleasant surprises off of your shoulders. A fender bender, a crack in your windshield, even a stolen car could be reduced to an inconvenience if you have insurance. Without auto insurance, these events would be not only bad days, but possibly very expensive or life altering events.

It’s a Safeguard Against the Uninsured

The average cost of an uninsured motorist claim is about $20,000. When an uninsured driver causes an accident, insured drivers and their insurance companies often end up bearing the cost. Auto policies typically include uninsured/underinsured motorist coverage to pay for damages and injuries to you and your vehicle if you are in an accident with an uninsured driver. Policies pay for medical costs, lost wages, and numerous other expenses.

You Have Many Options

The good news is that UFCU partners with numerous insurance companies to customize a policy to your unique needs. Request a free, personalized insurance quote from UFCU and we’ll help you find the right insurance company and policy for your needs.