If you're new to the world of auto insurance, it's helpful to know a few things about this type of insurance coverage so that you can make well-informed decisions. According to Forbes, one in eight drivers don't have insurance. This can be a huge financial risk. Let's look at a few facts about auto insurance that you need to know.

1. It's Required by Law

In pretty much every state, it's required by law that you carry auto insurance on your vehicles. If you fail to keep insurance on your vehicles, you can face legal consequences as well as heavy financial consequences. If you continue to break this law, you could even have your license taken away. To avoid problems like this, simply keep insurance up to date.

2. There Are Different Types of Coverage Available

As with most types of insurance, there are different coverage levels in order to meet your particular needs. The goal is to provide different types of coverage so that people pay for what they need. You don't want to pay for coverage you don't need, but you also don't want to need a type of coverage and wind up not having it when you need it.

3. There Are Usually Discounts Available

Most insurance companies also provide discounts to encourage customers to bundle services or stay on a customer. Common types of discounts would be bundled insurance rates. If your insurance company provides multiple types of coverage, there is usually a discount for bundling the different types together. If you have teen drivers in your house, you might also want to check into good student discounts. This applies to students who keep a certain grade point average. These discounts can wind up making a big difference to a tight budget.

4. Your Insurance Could Be Connected With Your Tag

In some states, car insurance coverage and vehicle tags are connected. If you allow your insurance to lapse, it could affect your ability to get a legal tag on your vehicle. This is in place to encourage people to keep their insurance current at all times.

These are just a few things you might need to know about auto insurance. If you're looking for auto coverage in your area, please contact us today at Oliver Insurance Agency, Inc.