There are several reasons why you would need auto insurance, foremost of which is that it is required by the state when you register your vehicle with the Department of Motor Vehicles. The second reason is because it is your social responsibility to have one. Imagine if by any chance you hit upon an innocent pedestrian and have caused some bodily damages to the pedestrian as a result. The pedestrian will be so helpless and certainly should not pay for the damages you have caused. Auto insurance ensures that there will always be funds available for such purposes, therefore making sure that other people and properties are protected from you, should you be negligent in your driving. But most of all, auto insurance is your best financial protection against any potential expenses in the future resulting from vehicular incidents or damages.
Auto insurance is paid through premiums which vary depending on the circumstances. These factors include the make and engine of the car, the amount of time usually spent on the road travelling, places most frequently visited, type of coverage required, driving record of the authorized driver, and, you may be surprised to find out that credit history actually affects calculation of auto insurance premiums.
This may be debatable and certainly it has not yet become a science, but insurance companies have the notion that bad creditors are also irresponsible drivers and therefore a more risky person to insure. Because of the high risks perceived, auto insurance companies generally increase the amount of premiums for car owners who have bad credit history. To avoid this, try to maintain a good credit score and avoid delays in payment for your credit card bill. If you are already in debt and need to get auto insurance, look around for some debt consolidators who would offer to pay your loans amount in full, and in turn you will pay them in installment. This will at least make your credit report look good while you are still working on totally eradicating your debts.