Don’t Like the Price of Insurance? The True Costs of Being an Uninsured Driver

Friday, October 24, 2014, AM | Leave Comment

Having a car is expensive, and many people are tempted to cut costs wherever possible. It’s important to remember, however, that driving without insurance is likely to be exponentially more expensive than purchasing a policy in the first place.

No matter how safe of a driver you believe yourself to be, there are many costs that can incur when you skip out on paying for insurance.

Don't Like the Price of Insurance - The True Costs of Being an Uninsured Driver

Keep reading to get a good idea of the types of costs waiting for you if you decide not to pay for insurance.

  • Do All States Require Car Insurance?

    Odds are, your state requires you to carry proof of insurance with you at all times. That being said, there is a rare state, like New Hampshire, that doesn’t require car insurance.

    Generally, in states without an auto insurance requirement, you are required to prove that you have the financial resources available to cover the costs of an accident you cause (or an “at fault” accident).

    These requirements are difficult to meet and your driving privileges can be suspended if you ignore them.

    However, regardless of the requirements of your state, it can be very foolish to drive without insurance.

  • What’s the Worst That Could Happen?

    Car accidents are expensive. There is damage to the vehicle, damage to other property (like public or private property on the side of the road), and personal injuries to worry about. Even a fender bender could result in thousands of dollars’ worth of damage.

    A more serious accident, on the other hand, could easily spiral up to tens of thousands of dollars.

    If you don’t carry insurance, or if you carry insufficient insurance, you’ll be the one on the hook for the cost. You may think, “No problem, I just won’t pay.”

    However, in most states, the other person or their insurance company can sue you for the damage done. This is especially true if you live in a state with “at fault” laws as opposed to “no fault” laws.

    If you’re sued for damages, you can lose assets like your home, savings like a 401k, or more. Not to mention, depending on the dollar amount of the case, you might be required to hire a lawyer.

  • What if I Can’t Afford Car Insurance?

    Even if you are on a tight budget, there are many ways to help lower your monthly payment for car insurance.

    For instance, you could drop roadside assistance, rental car coverage, and lower your liability amounts.

    However, you should really resist lowering your liability amounts if at all possible. Speak with an agent to get a good idea of the types of areas you want covered, and where you can save money on the less important coverage.

Bottom line, driving with car insurance just isn’t worth the risk. If you really can’t afford car insurance, then you just can’t afford to drive. Risk it and, at best, you may be faced with an expensive ticket, lose your license, lose your assets, or even serve jail time.

AUTHOR BIO

This article was written by Dixie Somers, a freelance writer who loves to write for business, finance, and women’s interests. She lives in Arizona with her husband and three beautiful daughters. Dixie got her advice for this article from a car accident lawyer in Vancouver at the firm of Taylor & Blair.

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