Auto Insurance - Why Have It?

Did you know that there are over 8,000 insurance companies in the United States today with over $3.1 trillion in assets? While you may be blown away by those numbers you may still be asking, why have insurance at all? Why have auto insurance? When you think about it the facts are quite simple, we have auto insurance for peace of mind, to prevent losses and to save money...that's right, save money!

First off, consider the peace of mind that you have when you have auto insurance. If not for your auto insurance you would constantly be worried about what is coming around that next corner when you drive. A $20,000 car being totaled would be the worst thing that could happen in a world without auto insurance. In a world with auto insurance, your $20,000 car being totaled is just an inconvenience.

As we just touched on, auto insurance helps you prevent losses in ways that you may never have imagined. You generally tend to think of the damage to your own vehicle being covered by your auto insurance, but this couldn't be further from the truth. Where almost any driver will prevent a loss is by the potential damage that they cause to another driver.

Let's say that you have an accident that causes significant damage to another driver and the driver's vehicle and the accident is your fault. Instead of worrying about negotiating with mechanics and doctor's and so on, you let the experts take care of it for you. In short, have auto insurance on your vehicle is like having an attorney for your vehicle. If there is damage to your vehicle or anyone else you come in contact with, let your auto insurance take care of it!

Steve Newsome is an auto insurance expert who writes daily for a popular auto insurance blog. For more about Auto Insurance, read more from Steve at his Auto Insurance Blog!