If you have ever been in a car accident, you may already know the value of car insurance.  Buying car insurance is about buying protection.  It provides financial protection in the event that you are involved in a car accident or something happens to damage your car.  This article will walk you through the basics of car insurance, explain what to consider when selecting an insurance company or broker, and what to ask when purchasing a policy.

First, let’s look at why it’s important to have car insurance.

Why Buy Car Insurance?
The first, most basic, reason to buy car insurance is because almost every state in the U.S. requires car owners to have it.  State insurance commissioners regulate insurance companies.  You can get information on what type of insurance, and how much of it, you are required to have in your state through the National Association of Insurance Commissioners website. 

The second reason is that it protects you financially.  It will pay expenses related to your accident and can protect you from future judgments and legal costs related to the accident.  While car insurance may be expensive, you need it.  You need it if for no other reason than it is required by law.  And being uninsured can leave you financially unprotected if an accident victim should choose to sue you or if the damage and/or medical expenses are extraordinarily high.