If you’ve pulled over by a police officer, you know that one of the first questions they ask is about your insurance. If you’re driving a vehicle without insurance, you’re in violation of the law. However, this law often confuses people who don’t understand the reason why it’s necessary. Here’s why you absolutely should not leave home without auto insurance.
Likelihood of an Accident
In 2014 alone, there were nearly 5.5 million auto accidents within the United States alone. Driving is one of the most dangerous activities people take part in, and most don’t even realize it. However, an automotive accident is also extraordinarily expensive. When your vehicle is damaged, it has to be repaired — but even if your auto insurance policy doesn’t cover that, you are legally required to have liability coverage to pay for the other driver’s repairs, should the accident be deemed your fault.
Cost of an Accident
In 2013, liability coverage alone paid out an average of $15,433 per accident. Imagine paying that out of pocket — do you have that kind of cash to spare? Automotive insurance doesn’t just protect you, but also the other person involved in an accident. The insurance helps shield your personal assets from total loss in the event of a crash. While your monthly premiums may increase after an accident, the cost is well worth it to offset paying thousands of dollars out of pocket to repair your vehicle or the other persons’.
One of the reasons some people shirk the law and drive without insurance is because of premium costs. Certain policies are much more expensive than people can afford; however, there are ways to cut costs. Check with your insurance provider and find out if they have any discount programs you may qualify for, whether it’s a good driver discount or a good student discount. Some companies offer discounts for members of the armed forces or public service members.
Even if the thought of paying a high monthly premium is off-putting, it’s far more expensive not to. Given that your chances of being in an accident are extraordinarily high, it’s important to make sure you are protected against harm. The average policy covers not only liability, but also repairs, car replacement, and helps to pay the medical bills for any injuries incurred during the crash. Can you really afford to not have auto insurance?