Why is it important for drivers to maintain their auto insurance coverage?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

Maintaining auto insurance coverage is crucial primarily to avoid legal penalties. In many jurisdictions, having at least a minimum level of auto insurance is a legal requirement. Driving without insurance can result in various consequences, including hefty fines, points on your driving record, or even the suspension of your driver's license. Ensuring that you have continuous coverage not only keeps you compliant with the law but also protects you from potential financial liabilities in the event of an accident or damage. This legal obligation underscores the importance of carrying insurance at all times while driving.

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