These Shocking Traffic Statistics Reveal Why Everyone Needs Car Insurance

Traffic accident statistics are scary.

According to annual traffic crash data compiled by the National Highway Traffic Safety Administration (NHTSA), there were 35,766 fatal crashes in 2020 resulting in 38,824 fatalities. Over two million people were injured in vehicular accidents, equivalent to 693 people injured per population of 100,000. 

On average, there were 6,235 people injured per day in 2020, a 16.9% decrease from 2019. However, fatalities increased by 6% from the previous year to 106 fatalities per day. Notably, alcohol-impaired fatalities rose from 28 to 32 per day, with 10,598 fatal crashes caused by alcohol-impaired driving. In total, alcohol impairment was responsible for 29.6% of fatal crashes. 

Meanwhile, speeding accounted for 29% of the total fatalities. According to the Centers for Disease Control and Prevention (CDC), motor vehicle crashes are the second leading cause of death for teens, with teen drivers between 16–19 years old almost three times as likely to be in a fatal crash as drivers aged 20 and above.

Given the very real possibility that you may be involved in a car accident at some stage—be it due to your negligence or someone else’s—getting car insurance is a good idea. However, it is not the only reason why you should get car insurance.

Car insurance is required by law

In most states car insurance is mandatory. If you are found driving without valid car insurance, you could face license suspension, license revocation, vehicle registration suspension, fines, and even jail time. Drivers must carry proof of insurance such as a physical or electronic copy of the insurance card anytime they operate a vehicle.

Each state has its required minimum coverage. For instance, Texas requires 30/60/25 coverage: Insurance should cover at least $30,000 for injuries per person, $60,000 for injuries per accident, and $25,000 for property damage. Once you have your license suspended due to driving without insurance, you will have a surcharge attached to your license renewal fee every subsequent year.

Car insurance covers medical compensation

Imagine this scenario: You are driving along minding your own business when you get hit by another car. The driver of this car is insured. You and your passengers sustain broken bones and neck injuries that require immediate emergency room attention. The driver puts in a claim with his insurance company and your medical expenses and car repairs are taken care of.

Now, what if the driver is uninsured? You and your passengers will have to pay out-of-pocket for expensive medical expenses and any ongoing treatment. Your injuries will put you out of work, adding to your financial burden. Your credit score will plummet while you get involved in a lengthy legal battle to get your entitled compensation from the irresponsible driver.

Many states only require bodily liability insurance and property liability insurance which covers the cost of medical bills and property damage incurred in an at-fault situation. You can add personal injury protection which protects you from uninsured drivers and takes care of your medical expenses after an accident, regardless of who caused it.

If you are found to be responsible for causing an accident, you become liable for your passengers’ medical expenses. You do not want to let them down by being unable to foot the bill when they get injured. Medical payments coverage can help you pay for your passengers’ surgery and hospital bills.

Car insurance protects you from repair costs

Another huge financial liability of an accident comes from repairing your vehicle. If you caused the accident, collision insurance will help you to cover the cost of repairing your car or even replacing it. Collision insurance will also help you to get your car back on the road if the driver who caused the accident is uninsured or if their insurance does not cover the full cost of your repairs.

Comprehensive insurance covers a variety of damage incurred by your vehicle, even when there is nobody at fault. For example, the windscreen may get broken in a hailstorm, the hood may get crushed by a falling tree, or the car may get stolen and crashed. If you depend on your car for transport and income, comprehensive insurance ensures that you will always have a vehicle for your daily use.

How to choose the right car insurance

By now you may be thinking, “How much is car insurance in Texas?” Well, car insurance costs vary from state to state and depend on several factors. There are now many insurance providers who can create personalized quotes in minutes. Choose providers that allow you to file claims and receive compensation quickly.

Generally, car insurance rates get cheaper as you get older because insurance providers consider older drivers to be more experienced and responsible than teenagers. Another way to keep your car insurance cost low is to have an excellent driving record. Some insurance providers will also offer better rates to married couples.

The type of coverage you choose will have the biggest influence on your car insurance costs. You must always get the basic coverage required by your state but, you can be flexible on optional policies. Be sure to weigh the risks and benefits of optional policies such as medical payments coverage or collision coverage.