If you are the victim and in need of compensation for injuries that you sustained, as well as any damage to your vehicle, car insurance enables a person who may have no other financial resources, to compensate for your loss.

Having car insurance enables you to get on with your life, even if the accident is your fault.

If you didn’t have car insurance and you were the causes of an accident, you would have to pay out of pocket for the repair. Car insurance allows you to get your car repaired or replaced fairly quickly.

If car insurance does nothing else, it will protect your assets. If you’re determined to be at fault in an accident the other party will pursue your insurance company, not you, to get compensation.

An auto loan is secured by the value of your vehicle. If anything were to happen that would damage the car, it would diminish the value of it. That would weaken the car lenders collateral. Lenders are most interested in knowing that you have collision and comprehensive coverage as part of your car insurance policy.

The reasons given above are why the state mandates car insurance coverage. By requiring that everyone has it, everyone is protected from the risks of owning and driving a car.