Most people assume that car insurance is a good thing, but it can be costly to keep it. Even though car insurance takes a bite out of your budget, it is one of those things that should not be an option, but a necessity. Here are the three main reasons car insurance coverage protects you and other drivers.

You Are Covered In Case An Uninsured Motorist Crashes Into You

One of the most obvious reasons that car insurance is truly beneficial is that you are guaranteed at least some level of accident safeguard if you have uninsured motorist coverage. Part of the minimum coverage mandated by the state of North Carolina is to take care of you and your passengers in the case of an accident with an uninsured motorist.

You Will Stay On The Right Side Of The Law

The last major reason to maintain car insurance coverage is to avoid penalties from the state of North Carolina. If you own an older vehicle and its completely paid off, you may only want the minimum coverage required by law. That way you comply with the letter of the law but spend less money. For those with a leased vehicle or a car loan, additional insurance requirements will likely apply.

Full Insurance Will Help Your Drive In A Pure Contributory State

You may want to think twice about carrying only the minimum amount of insurance required by law when you know what a pure contributory state is. A designation of `pure contributory’ is the most strict type of negligence designation when applied to motor vehicle accident liability. This means that even if you were the slightest bit at fault in a collision, you would not be able to collect from the other driver involved in the crash.

Pure contributory states are rare. North Carolina is one of four such states in America as well as the District of Columbia. Even if you were judged only five percent at fault for a collision, you would need to rely on your own insurance coverage to pay for the damage and medical bills.

Legal representation can help to evaluate your automobile accident thoroughly. A lawyer experienced in personal injury can develop a strategy to pursue the maximum amount of compensation possible for your case.