There are multiple reasons why auto insurance is necessary, let’s cover the top 3 reasons why you need auto insurance.

Most states require drivers to carry at least the minimum level of car insurance which is usually liability insurance to legally operate a vehicle. Driving without insurance can lead to penalties such as fines or even license suspension.

If you ever get into an accident where you are at fault, auto insurance such as liability coverage can help cover the damages for the other driver rather than paying for it yourself out of pocket.

Auto insurance can also protect you against uninsured and underinsured motorists. If the other party who hit you does not have auto insurance or it’s a hit and run, that is when your uninsured coverage kicks in, but if the other party does have auto insurance but it’s not enough to cover your expenses then that’s when you use your underinsured coverage. 

This basically helps to pay for whatever medical expenses or damages that the at-fault party couldn’t cover.