When you purchase a vehicle, one of the most important things you need to do is make sure to purchase an auto insurance policy. At Sump Insurance, we sell auto insurance policies to motorists in Clarinda, IA.
The following are three important reasons why you must have auto insurance if you own a vehicle:
Auto insurance is required by law
Auto insurance is basically required by law in every state. If you are pulled over and aren’t insured, you can be cited for driving without insurance. Penalties for driving without insurance coverage are very harsh in many states, so you need to make sure that you’re covered.
Auto insurance protects you financially
It’s important to carry auto insurance to protect your finances. Auto insurance can protect not only your investment in your vehicle but also your savings. If you are responsible for a costly auto accident, you will have to pay out of pocket. This could lead to a significant or even complete loss of your assets.
Auto insurance is required by auto loan lenders
Many motorists took out a car loan to purchase their vehicle. If you borrowed money to buy your vehicle, it’s important to know that your auto lender will require you to carry auto insurance.
If you are carrying auto insurance to meet your auto loan lender’s requirements, you’ll need to have both liability and collision coverage. Collision coverage protects the value of your vehicle while you’re paying back your loan.
We Are Here To Help
Are you interested in exploring your auto insurance options in Clarinda, IA? We can answer your questions about auto insurance and provide you with a quote on a policy at Sump Insurance. Get in touch with us today!