Car insurance is an investment required by law that protects you from the unexpected. Although the most conspicuous reason for having auto insurance is to cover you in the event of an accident, car insurance is a valuable service for a number of unforeseen events. What happens if your car is stolen, or destroyed by flood or fire? Every driver needs car insurance because taking the liability of driving uninsured is not only against the law, it can have an extensive negative impact on your life should you take the risk and lose.