Can You Afford Not to Have Auto Insurance?
Most states in the United States require auto insurance. If you are financing your car, the bank is going to require you to carry auto insurance, and having auto insurance is just good sense.
The liability portion of your auto insurance policy pays for damages you are liable for. This is what the state is worried about. If you have an auto accident that is your fault, the liability will pay for personal injury that you have caused to others. The liability will also pay for the property damage you may be responsible for: the light pole you crashed into, or the car you hit, or you went off the road and tore up someone's lawn, or maybe you kept going and slammed into the house.
The comprehensive and collision coverages on your auto policy pay for the physical damages to your car. The bank is concerned with that. If they repossess your car, they don't want to repossess a piece of junk!
Comprehensive coverage will cover fire,theft,vandalism and glass breakage. If someone steals your car, the comprehensive portion of your auto policy covers that. If your windshield gets broken, comprehensive covers that. If someone keys your car, the comprehensive coverage also takes car of that.
Collision coverage covers crashes. If you have an auto accident and it is your fault, the collision coverage will pay for the repairs to your car. If someone hits your car and takes off, the collision coverage will pay for the repairs.
If something happens to your car, can you afford to fix it on your own? Auto repairs are expensive. Do you have the extra cash lying around that you can afford to fix your car on your own? It would probably be cheaper to pay the insurance premium and let the insurance pay for the repairs.
So, can you afford to not have auto insurance? If you have an auto accident and it is your fault, you are responsible for the damages you have caused. The medical bills and the property damage. If you have auto insurance, the insurance will take care of that. The auto insurance will also pay for the repairs to your vehicle. Do you have the extra funds to cover all that? Chances are, it would be less expensive to purchase auto insurance.
The liability portion of your auto insurance policy pays for damages you are liable for. This is what the state is worried about. If you have an auto accident that is your fault, the liability will pay for personal injury that you have caused to others. The liability will also pay for the property damage you may be responsible for: the light pole you crashed into, or the car you hit, or you went off the road and tore up someone's lawn, or maybe you kept going and slammed into the house.
The comprehensive and collision coverages on your auto policy pay for the physical damages to your car. The bank is concerned with that. If they repossess your car, they don't want to repossess a piece of junk!
Comprehensive coverage will cover fire,theft,vandalism and glass breakage. If someone steals your car, the comprehensive portion of your auto policy covers that. If your windshield gets broken, comprehensive covers that. If someone keys your car, the comprehensive coverage also takes car of that.
Collision coverage covers crashes. If you have an auto accident and it is your fault, the collision coverage will pay for the repairs to your car. If someone hits your car and takes off, the collision coverage will pay for the repairs.
If something happens to your car, can you afford to fix it on your own? Auto repairs are expensive. Do you have the extra cash lying around that you can afford to fix your car on your own? It would probably be cheaper to pay the insurance premium and let the insurance pay for the repairs.
So, can you afford to not have auto insurance? If you have an auto accident and it is your fault, you are responsible for the damages you have caused. The medical bills and the property damage. If you have auto insurance, the insurance will take care of that. The auto insurance will also pay for the repairs to your vehicle. Do you have the extra funds to cover all that? Chances are, it would be less expensive to purchase auto insurance.
posted by The Insurance Guru at 6:19 PM
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