For the better part of your driving career, you may think that car insurance is a waste of money. However, in the event that you are in an accident, you are quickly going to see how important it is. There are several reasons why you should have car insurance. Following are a few of the most important ones.

Required by Law

The most practical reason why you need car insurance is because it is legally required. If you want to drive a car, you have to have car insurance. Each state will determine what type of car insurance coverage its drivers are required to have. Generally, you should expect to carry at least driver's liability insurance and extended coverage for bodily injuries, medical treatment and property damage.

Required by Lenders

If you want to use financing to buy a car, then you will need to take out a more comprehensive insurance policy. Lenders want to protect their investments, and so they may require you to carry full coverage car insurance with new car replacement coverage. This can be expensive, but it is necessary if you don't have the cash on hand to buy a car outright.

Protects You and Other Drivers

Accidents happen every day. Chances are that you will be involved in several car accidents throughout your driving career because of weather or road conditions, because of someone else's driving mistake or because of your own driving mistake. When accidents occur, you want to be covered so that lawsuits or medical bills do not destroy your financial life.

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