Car insurance represents a significant expense for most drivers, but it is important to maintain insurance on a car for both legal and financial reasons. Comparison shopping to find lower car insurance rates may save drivers hundreds of dollars a year. Free online car insurance quotescan help drivers find the auto insurance they need at a price they can afford.

1. It is illegal to drive without car insurance in the United States and its territories. The penalties for driving without insurance are high and include jail time in some states. An increasing number of states require insurers to report policies which have lapsed to the department of motor vehicles, so it is important for drivers to find affordable car insurance to maintain their drivers license and avoid costly penalties.

2. Even relatively minor accidents can result in thousands of dollars of damages for which a driver will be held responsible. Drivers who have no car insurance risk their financial assets, including earnings from their employment. The cost of paying for accident damages and legal fees plus penalties for driving without insurance can have a serious impact on the driver’s financial future.

3. In several states, proof of car insurance must be presented to the department of motor vehicles before a car can be registered or have its registration renewed. It is illegal to drive a car without a current registration and valid license plates. Police officers will stop vehicles that do not have valid license plates and drivers will be cited for registration violations and no car insurance. This can result in a suspension of driving privileges.

4. Drivers who have a loan on their car are required to carry collision and comprehensive insurance as a condition of the loan. If a lender discovers that a driver has no insurance on the car it is considered a breach of the loan contract. The lender can repossess the car even if all the payments are up to date. If the car is resold for less than the amount remaining on the loan, the driver will have to continue to make payments.

5. Mandatory car insurance laws have increased competition in the car insurance market. In this competitive atmosphere many insurance companies have lowered rates to attract drivers as new customers. Free car insurance quotes online help drivers take advantage of the lowest possible rates. It is often possible to get as many as five quotes on a single website which can save time as well as money.

6. Many drivers simply renew their car insurance policies without comparing their current rates to the rates of other companies. It is often possible to save a substantial amount of money by switching insurers. In only a few minutes, drivers with car insurance policies can compare the rates they are paying with the rates offered by other companies. Utilizing car insurance quotes online can lower insurance costs.

7. In these difficult financial times many Americans are struggling to pay their bills and looking for areas where they can save money. While eliminating car insurance is not a good way to save, finding lower insurance rates can help. Comparison shopping for car insurance is easy and takes very little time. Many websites offer car insurance quotes online that assist drivers in finding the lowest possible rates on the insurance they need.

There are other good reasons for comparing online car insurance, but driving legally, maintaining ownership of a car and saving money are among the most important. Driving without insurance can be far more expensive than paying a car insurance premium and comparing the prices of different insurance companies allows drivers to find affordable auto insurance for all kinds of insurance including teen car insurance.

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