You Won't Go Far Without It

Picking back up on the insurance discussion...

Technically, you can go somewhere without this type of coverage, you just can’t drive yourself there.  This week we are talking about auto insurance. If you don’t have a driver’s license, don’t own a car, and will never, ever drive anything, we will see you next week. 

Oh–you’re all still here! That’s probably because you live in the US and 85% of the adults in this country drive, even if they do not own a car (but they still need insurance). Actually, I’m surprised the percentage of drivers is not higher. But I am straying away from the subject at hand, and that is why YOU need auto insurance. It’s really pretty simple.

First of all, it’s the law. As of this post, only one state has not enacted an auto insurance law, but that state still requires you to show proof of financial responsibility. Second, you need to be able to pay for any damage you might cause to someone else’s person or property.

Once again, it is the idea of transferring the risk of the damage you could do from yourself to the insurance company. The more likely you are to cause damage, the more it will cost you.  Now, you might choose not to cover your own car, but chances are that you do NOT have a pile of cash stashed under your mattress that you could use to replace your own vehicle should you have a collision.

When I was a teenager, I bought my own car and was also responsible to pay for my own insurance. One night, I got a pulled over for a nonfunctioning headlight, but I left the scene with a ticket for not having auto insurance. I had to appear in court. When I did, the traffic judge asked me why I did not have coverage. I told him I could not afford it. He told me in no uncertain terms, “Young lady, if you cannot afford auto insurance, you cannot afford a car.” Lesson learned. This is one of those insurances that you cannot afford to be without, unless, of course, you’re going to sell your car, surrender your license, and have your mom drive you around like you did when you were a kid. Good luck with that.