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Why is car insurance required?
"Why don't you get a refund if you don't get into an accident at the end of your policy term? It doesn't seem fair to have to pay for insurance and still possibly lose your car in an accident. Shouldn't new car replacement coverage be standard in an auto policy?"
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Every state has their own
minimum coverage car insurance
required. The reason that this exists is to not only protect others from you, but you from others.A part of this is also ensuring you have the correct coverage on your vehicle. By adding
new car replacement coverage
or gap insurance
, you’re making sure your vehicle is covered.The reason why this isn’t standard on all policies is because of the cost.
Insurance claims are paid out of a pool. If everyone had new car replacement coverage, the premium pool would need to be bigger. This means everyone’s rates would be extremely high to cover potential damages.
Some insurance carriers do offer discounts for being a good driver or accident free. If you’re unhappy with your current rate, you should look into other carriers. You can use an online comparison tool like
Jerry
to shop for the best rates.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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