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Auto and car insurance is critical to have for a multitude of reasons. For one, most states now require certain levels of liability coverage to drive legally. If you are caught driving without insurance in one of these states, you could face stiff fines and/or have your license revoked. Secondly, you don't want one fender bender to obliterate your savings. The cost of car repairs is higher than ever, and even minor accidents can cost you thousands of dollars. Finally, a car insurance policy is important to insulate your assets from legal liability. After an accident, a lawsuit judgment could be issued against you, which could jeopardize your home, your retirement funds, and your investments if you don't have proper insurance coverage.
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