Most drivers see car insurance as something they don’t want to buy. They say it is a gamble. “So many people spend their whole lives paying premiums and not having to file a single claim for car insurance!” If you’re driving a vehicle that is more than two tons in weight and could cause damage or death, it is important to have car insurance. Although it may sound absurd, studies have shown that almost everyone is involved in an accident at least once every seven years.
Let’s look at possible losses that could occur if you drive without car insurance.
1. When you’re involved in a car accident, you are liable. If you don’t have car insurance, you must pay the other driver for any property damage, lost wages, or medical expenses. Let’s say you were a successful doctor, or hit a school bus with children. If you are unable to pay your dues out of pocket your assets can be taken. Imagine what would happen if you were sued by the parents of the children for medical expenses or the doctor for wage loss due to confinement. You could lose everything you have worked hard to build in your life. This is a very likely scenario in a society that favors lawsuits. Most states in the US require minimum liability car insurance to cover the costs of any damages caused by you to others.
2. If you are caught speeding, DUI or for any other traffic offense, you could be fined or have your registration suspended. The penalty will get worse if you do this more than once. Your license could be revoked, or you might end up in jail. It will be extremely difficult to find affordable car insurance once you have been caught driving without it. It’s not a comfortable situation, is it?
3. If you are in a car accident with another driver, this is the worst scenario. The other driver is at fault and you are not responsible. They also have no car insurance. Unless you plan to take them to court and file a costly law suit, you have no other choice than to pay for your damages out of pocket. Even worse, if an accident occurs and you are not at fault, it may be that the state has ruled you are at fault.
If you are unable to get car insurance because it is too costly, you can still be legal by getting the minimum liability insurance required by your state’s DMV. For example, OH car insurance requires you to have a minimum Bodily Injuries Liability of $12,500 per person. This is limited to $25000 per accident, and a $7500 property damage liability. It doesn’t cost much. Despite this, almost 16% of drivers on OH roads still drive without car insurance.
4. A car is stolen, damaged or stolen in an accident caused by extreme weather conditions. Cars are stolen all the time. New cars can be resold while old ones can be used for parts. Car accidents related to winter driving are very common. Anyone who has driven in snow knows how many cars get smashed and scraped. Do you have the funds to cover your car’s damages? Can you purchase a new, shiny car from the bank if it is stolen?
This is what you should think about when you are trying to save money on car insurance. It’s possible for accidents to happen at any time, so be prepared.
