Why Is Auto Insurance Important? Key Benefits You Should Know

If you’re weighing your coverage options or wondering what level of protection is right for you, it’s worth taking a step back to consider the importance of car insurance. At The Hartford, our policies are designed to provide peace of mind knowing you, your car and your passengers are protected.
Author:
Lily DiGregorio
Lily DiGregorio,Staff copywriter
Lily DiGregorio
Staff copywriter specializing in auto and home insurance for The Hartford.
Reviewed By:
Ben Ewbank
Ben Ewbank,Head of Personal Lines State Product and Pricing
Ben Ewbank
Head of Personal Lines State Product and Pricing at The Hartford.
LinkedIn Profile
Updated: 07/30/2025
Read Time: 6 minutes
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Key Takeaways

  • Beyond fulfilling any state requirements, having car insurance is critical to keeping you and your loved ones safe and confident on the road.
  • You may not be required by your state to carry all types of car insurance coverage, like comprehensive and collision insurance, but your lender may require you to have it if you have a lease or loan on your vehicle.
  • The Hartford offers customizable coverage options and exclusive benefits just for AARP members, on top of industry-leading customer service.

Do You Have To Have Car Insurance?

Yes, car insurance is required for drivers in almost every state. The only exception is New Hampshire, but drivers there do need to show proof that they can afford to pay the cost of an accident if it’s their fault.
Beyond legal requirements, why is auto insurance important? In addition to meeting any state requirements, most drivers carry car insurance coverage for the financial protection it provides. Whether you’re commuting daily or only driving occasionally, below are some essential reasons why your car needs insurance:
 
  1. Protect Yourself and Others: Car insurance helps provide peace of mind knowing you have the protection you need if you get into an accident, even if it’s with an underinsured driver or a hit-and-run. On the road, you can drive with confidence knowing you have coverage to take care of any property damage or bodily injury costs that may arise.
  2. Save Money: Car insurance also safeguards you and your loved ones from large expenses like legal fees, medical bills or repair costs. Coverages such as collision insurance, comprehensive insurance, property damage liability and bodily injury liability help cover the costs of expensive claims if an accident happens.
  3. Save Time and Hassle: The fallout from a car accident can be incredibly time-consuming and tedious. But with good car insurance, you can avoid the headache and instead rely on your insurance carrier to help. From roadside assistance to filing a car insurance claim, The Hartford is here help manage the process and support you through it, every step of the way.
  4. Supplement Your Health Insurance: In some states, medical payments coverage is available as an optional add-on, helping cover out-of-pocket costs like hospital visits, ambulance fees or follow-up care after an accident.2
The Hartford’s car insurance calculator will explain how much coverage you need to meet your state’s legal requirements, plus provide tips to help you decide if you should extend your protection further.
driver protected by knowing why do you need insurance on a car

Do I Need Collision and Comprehensive Coverage on My Car?

Collision and comprehensive coverage are not required in all states. But, if you have a lease or a loan on your vehicle, your lender will likely require you to have it.
 
Collision coverage helps pay for damages done to your car in the event of a car accident, no matter who is at fault. Let’s say your car gets rear-ended while you’re driving in traffic. This physical damage coverage will help cover the costs to repair your damaged rear bumper. Or, if the situation is reversed and you are the one who hits someone from behind, collision insurance coverage will still help pay for the cost to repair your damaged front-end.
 
Comprehensive coverage helps pay for damages done to your car in non-collision accidents including natural disasters, fire, vandalism and theft. (Yes, car insurance covers theft.)
 
Some drivers wonder: Why do you need insurance on a car that you had fully paid off? If you own your car outright and it’s older or has a low market value, you may not be required to carry comprehensive or collision coverages. In that case, it’s worth considering whether you want to carry these coverages. Determine how much you can afford to spend out-of-pocket if your car is damaged and what coverage will cost to help you decide.
With AARP® Auto Insurance from The Hartford,1 you can enjoy customizable coverage options without breaking the bank. In fact, you can save up to 10% on your auto policy just for being an AARP member.† Call The Hartford today at 888-546-9099 to get started.
 

Get a Car Insurance Quote From The Hartford

So, why is auto insurance important? Having car insurance not only ensures you’re driving legally, depending on where you live and what vehicle you’re driving, but also provides comfort knowing you, your car and loved ones are protected if an accident occurs.
 
Just as important as having adequate coverage is picking the right carrier for your unique needs. For over 40 years, The Hartford has offered quality coverage and exclusive benefits for AARP members. To learn more about AARP Auto Insurance from The Hartford, get a quote online or call us at 888-546-9099 today.

Frequently Asked Questions about Car Insurance

If someone other than you will drive your car regularly, you’ll likely need to add them to your auto policy to ensure you have appropriate car insurance coverage.
 
If a friend is quickly borrowing your vehicle, your auto insurance may follow the car and extend its protection to cover your friend. In some cases, your friend’s insurance may also come into play to help cover excess damages that your policy can’t cover. Or, if your friend doesn’t have car insurance, you’ll most likely be fully responsible for all damages done in an at-fault accident.
 
It’s also important to know that you can exclude individuals from your policy. This means that those people will not be covered by your auto insurance if they drive your car.
 
To learn how much car insurance you need and protect against a wide range of scenarios, call The Hartford’s specialists at 888-546-9099.
Drivers who come home for the holidays or stay at a family member’s home usually borrow a loved one’s vehicle, even if they don’t typically drive. That’s why it’s important to keep college students on your insurance policy, even if they won’t have a car with them while away. Chances are, they’ll want to use your car during vacations and you’ll want peace of mind knowing they’re covered when they do.
Yes, the car you drive affects the cost of your car insurance premium, even down to the year, make and model. Certain cars may help lower your car insurance costs if you need less coverage on them, like an older vehicle you own. Other types of cars may raise your premiums, especially if they are new or have a higher chance of being stolen.
 
At The Hartford, we like to help our customers save money. For example, if your car is a hybrid or electric vehicle, you may receive an auto insurance discount.

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2 Medical benefits are calculated on the basis of usual, customary and reasonable charges.
** Average annual savings are based on information reported by customers who switched to The Hartford’s newest rate plan between 9/1/24 and 8/31/25. Average auto insurance savings $597 and average home insurance savings $366. Your savings may vary. Rate differences for AARP members and non-members vary by state and AARP membership tenure. Auto/Home discount is available only to policyholders who have both their auto and home (or condo or renters) insurance through the AARP Auto & Home Insurance program from The Hartford. The Hartford does not write new business in all areas, including the states of CA and FL.
 
§ Availability of RecoverCare benefit and benefit levels vary by state. The Hartford RecoverCare Advantage® is a registered mark of The Hartford.
 
§§ Terms and conditions apply.
 
‡ Terms and conditions apply. Accident Forgiveness and the Disappearing Deductible are not available to CA policyholders.
 
‡‡ Terms and conditions apply. Availability varies by state.
 
‡‡‡ Based on one car and driver; individual rate/premium/savings will vary based on actual coverage selections and characteristics of vehicle(s)/driver(s).
 
Additional disclosures below.
AARP® Auto Insurance
Quick Links
FAQs
For AARP® Members
Additional Resources
Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.
 
AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.
 
The AARP Auto Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA, by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MA, by Trumbull Insurance Company; and in PA, by Nutmeg Insurance Company and Twin City Fire Insurance Company. The AARP Home Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Nutmeg Insurance Company. The Hartford does not write new Home business in all areas, including the states of CA and FL. Savings, benefits and coverages may vary and some applicants may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.
 
1 In Texas, the Auto Program is underwritten by Redpoint County Mutual Insurance Company through Hartford of the Southeast General Agency, Inc. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Redpoint County Mutual Insurance Company. The Home Program is underwritten by Hartford Insurance Company of the Southeast.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.