Why Do You Need Auto Insurance? 3 Big Reasons
A-MAX Editorial Team
Reviewed by Jayson Cheves, Licensed Insurance Agent
Short answer
You need auto insurance because almost every state requires it, including Texas, California and Arizona. Driving without it can mean fines, a towed car and fees. Insurance also protects you when another driver makes a mistake, and it helps pay for damage and injuries after an accident, so one bad day doesn't wreck your budget.
It feels like everything costs more these days, so it's normal to look for places to cut back. Maybe you're thinking, "I'm a safe driver. I've never been in a wreck. Do I really need to pay for car insurance every month?"
The short answer is yes. Auto insurance isn't only about paying for an accident. It also saves you a lot of stress. Here are three reasons to protect yourself and your wallet.
Is auto insurance required by law?
In almost every state, yes. Texas, California and Arizona all require drivers to carry at least a minimum amount of liability coverage. If you're caught driving without insurance, you can get a ticket and fines, and your car may be towed and impounded. That means paying impound and storage fees on top of the ticket.
How does insurance protect you from other drivers?
Be honest. How many times have you yelled at another driver, "You can't drive!"? There are bad drivers everywhere, and you can't control what they do.
Don't get stuck paying for someone else's mistake. Even if an accident isn't your fault, you can still face penalties if you aren't insured. On top of a damaged car, possible injuries and a fine, you'd have to deal with the other driver's insurance company on your own. Having coverage you can trust is the easier path.
What if your car is parked or in storage?
Accidents happen, even to cars that aren't moving. If you're not driving your car for a while, ask about parked car or storage coverage. Here's what to keep in mind:
- Storage coverage is for a car that stays put. It won't fully protect you if you decide to take the car for a drive.
- Some storage coverage only applies when the car is kept inside a building. Check the rules of your policy.
- Dropping liability coverage may sound tempting, but a car registered in your state usually still needs it. Check with your state's motor vehicle agency first so you don't end up with a fine.
And for the risk takers out there: A-MAX can help with a lot, but we can't pay your tickets or impound fees if you get caught driving without coverage.
How A-MAX can help
Walk into one of our 240+ offices in Texas, California and Arizona, or call 1-800-921-AMAX. We shop multiple carriers and help you find coverage that fits your life, in English or Spanish.
About this page
Written by the A-MAX Editorial Team. Reviewed by Jayson Cheves, Licensed Insurance Agent. We review and update it as state rules and carrier availability change.
Last updated October 29, 2026
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FREQUENTLY ASKED QUESTIONS
Yes. Your state still requires coverage no matter how good your record is. Insurance also protects you from drivers who make mistakes, and it can help pay for damage and injuries in an accident that isn't your fault.
You can get a ticket and fines, and your car may be towed and impounded. You'd also be on the hook for impound and storage fees, plus any damage or injuries you cause in an accident.
You may be able to switch to storage or parked car coverage. Before you drop liability coverage, check your state's rules, because a registered car usually still needs it. An A-MAX agent can walk you through your options.
NEED CAR INSURANCE?
We shop. You choose. Get a free auto quote online, call 1-800-921-AMAX, or stop by an office, in English or Spanish. No commitment.