Lucky for us, Dave Ramsey is happy to provide an explanation.

What type of insurance do I require?
Insurance is designed to ensure that you are protected from danger. It is all-encompassing in our lives, and is it especially prevalent on the roads. You may be an outstanding driver. Your signaling may be crystal well-defined and you can enjoy a safe journey at all times. You might not be more cautious than you believe, but it doesn’t change the fact that there are others on the roads with less vigilance than you.

There are many things that could go wrong, which includes other drivers on your car or other vehicles road conditions, the weather, and much more. That’s why the risk is inevitable, and if you’re not holding an insurance policy for your vehicle that is adequate enough, you may be able to not even have insurance at all.

If you are thinking of the expense of injury or damage to property caused by the driver and/or cars, the average policy isn’t going to cover the cost. That’s why it’s so important to not only have insurance but to have enough insurance. q3srpdasym.