If you are a new driver, or new to driving in the United States, there are some things you must know about automobile insurance in order to drive a car responsibly.

The Basics
So what exactly is auto insurance? Auto insurance is a contract with you and an insurance company that helps protect you against financial loss after a car accident.

Is Auto Insurance Necessary?
Yes, it is. Most states have laws that require all drivers to purchase car insurance; although, there are a few states that only require that you show “financial responsibility.” If you are stopped by a police officer and found without car insurance, you may be subject to penalties according to the laws of your state. These penalties can include hefty fines or even the loss of your driving privileges. If you are uninsured and have an accident, you may have to pay damages out of pocket. And, that can be very expensive.

Can Anyone Get Auto Insurance?
Yes. If you are unable to find an insurance company that will accept you, states have assigned risk plans to assure vehicle coverage.

So, as you can see, automobile insurance is not just a good idea, it is also the law. It’s important to get insured and stay insured, not only for yourself, but also for the good of all drivers sharing the road.

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