Skip to main content

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.

Comments

Popular posts from this blog

Gifts that Matter

When I think about my childhood, there are a few events (some good, some not so good) that really stand out. These specific incidents made big impacts on me, so they really stuck. I bet you can say the same thing. These encounters, good and bad, help shape who we are. As parents, it is our job to teach our children to be honest, upstanding, contributing members of society. This does not happen by accident. Part of this process involves the experiences we give our children–we can orchestrate PEAK moments for our families that will leave lasting impressions on young, impressionable minds. What is a PEAK moment? According to de Jager Meezenbroek, Garssen, van den Berg, van Dierendonck, Visser, and Schaufeli in the Journal of Religion and Health , “Peak experiences are often described as transcendent moments of pure joy and elation. These are moments that stand out from everyday events.” Christmas offers an EXCELLENT opportunity to offer experiences that can become “PEAK moments” in ...

Remove the Specs

You have probably heard the phrase, “looking through rose-colored glasses”? If not, allow me to introduce you to this idiom. It basically means seeing things the way you want to see them while putting a positive spin on that. It’s not a bad thing, but sometimes you need to see something for what it really is. How many of us have ever spent impetuously because we were upset or angry? “Gee, my spouse spent $500 on a (insert whatever he might buy to feed his hobby here) without asking, I should be able to spend the same on (insert what you would like to get here)!” I’m sorry/not sorry, but this is NOT a healthy way to look at things. It’s just wrong. And it’s a great example of erroneous thinking when it comes to managing money. According to Kingsford, “Thoughts create the emotions that drive us...” Oh, how true it is! She also points out how events lead to thoughts, which in turn lead to feelings. For purposes of today’s post, I’m going to call this “The Cycle.” If you want to be f...

Choose Good

Someone I know recently made a trip to the grocery store. Another shopper thought she was buying too much bread for her family of nine and assaulted her. My friend is shaken but okay. The assailant was escorted from the premises. Unfortunately, emergencies bring out the worst is some. Whenever there is some sort of trauma going on in the world (and when is there NOT these days?) all kinds of crazies are going to come out of the woodwork. Don’t fall prey to one of them. You’re probably going to get phone calls from people claiming to be from different charities that are raising money for this and that. I used to try to tell them “No” politely. Now I just hang up. Or, better yet, don’t answer numbers you do not recognize, even those with the same area code you have. If you can and want to contribute to a charity, use one you have used before. While disasters bring out the scary, they also can bring out the best of us.   Be one of them. We are all spending more time a...