• Certain forms of auto insurance will pay for the damages to the vehicles involved.Wreck image by Gudellaphoto from Fotolia.com
  
  You may consider auto insurance premiums a waste of money, but many times you have no choice other than to purchase auto insurance or else you will violate the law. There's no way to predict when you might have an accident, either through your fault or someone else's, so insurance serves as a safety net just in case something happens.
  
  

Meet Legal Requirements

• All states require that you carry a state minimum of insurance coverage in the event of damages sustained in an auto accident, according to the National Association of Insurance Commissioners. The amount of coverage you will have to maintain will vary from state to state.
  
  

Safeguard Assets

• Insuring your car for it's value will guarantee that you can receive money for repairs or replacement if it's damaged or totaled in an accident. In addition, certain forms of auto insurance will protect you from losing your home, stocks and retirement funds to a lawsuit because the insurance company will pay the damages on your behalf.
  
  

Pay for Expenses Incurred

• Different forms of auto insurance can cover damages to vehicles, medical expenses for victims and expenses for repair of personal property. Without auto insurance you will be liable for the expenses involved in a car accident. This holds true whether the accident is your fault or not. If you are involved in a car accident with an uninsured or under-insured motorist, certain forms of auto insurance will cover the damages no matter who is at fault.
  
  

Satisfy Lender

• When your car is financed by a lender, the lender often requires that you maintain auto insurance to protect their investment. In case of damage or loss, the lender knows that the auto will be repaired or replaced and the money they have extended to you will not be at risk of going unpaid.