All states require drivers to have car insurance. While the specific requirements for car insurance will vary depending on which state you call home, the law is generally the same. Despite the legal ramifications, the Insurance Research Council (IRC) reported that about 13 percent of motorists in the U.S. were driving without insurance in 2014. This is equivalent to one in every eight drivers on the road.
If you happen to be one of the motorists driving around without insurance, you should be very wary. If you are caught, you will face hefty fines and other significant financial woes.
Accidents cost a lot of money
According to the Insurance Research Council, the average cost of a liability claim, in which property was damaged, in 2013 was $3,231. Accidents involving bodily injury cost much more ($15,443). The actual cost of the accident depended on the severity of the accident, vehicles involved, and more.
Unless you’re a millionaire, these expenses aren’t easy to manage. Having insurance can ensure that your expenses are covered in case you’re sued or held liable for damage that occurred in the accident. If you have collision insurance coverage, your insurance provider will cover the cost of replacing or repairing your vehicle.
Tickets cost money too
If you happen to be caught without insurance, you will be given a ticket and fined for not obeying the law. If you happen to be involved in an accident and don’t have insurance, the consequences can be worse.
Fines for driving without insurance can cost you thousands of dollars in many states. You may also have demerit points added to your license. If this is not your first offence, you could have to spend some time in jail.
Any conviction that the court charges you with is recorded on your driving license. These records will be made available to insurance providers whenever you apply for insurance. Insurance providers will charge you higher insurance premiums if you have a bad driving record. They’ll consider you a high-risk driver, and, therefore, a poor investment. To avoid the negative consequences, and keep your expenses low, compare car insurance quotes and get insured today.
The cost of towing the vehicles
The vehicles involved in an accident often have to be towed off the scene pending further investigation. States regulate the cost of towing. However, this doesn’t mean that it is cheap. Towing charges can run in the hundreds of dollars, depending on the number of vehicles being towed, the distance towed, and the number of days the vehicles remain in storage. Taxes imposed by the state also affect the cost of towing.
If you happen to have collision coverage, your insurance company will cover the cost of towing if you are found to be at fault. If you don’t have auto insurance, you will have to dig deep into your pockets to pay for the towing services.
It all adds up
All the costs add up to tens of thousands of dollars, which is not an amount that many people have readily available. Accidents happen when we least expect them to. Make sure you’re covered before you’re stuck with the bill.
Getting the best deal
Many motorists who don’t have insurance complain that it is too expensive. CoverHound, an online insurance comparison platform, offers a variety of car insurance quotes from reputable insurers so consumers can compare identical policies and choose the most affordable premium. Additionally, many car owners are able to identify discounts and deals through these online insurance shopping platforms that make car insurance more affordable.
Car insurance allows you to pay a little now, so that you don’t have to pay a lot later. Protect your assets by investing in car insurance today. By taking the first step and investing in auto insurance, you are financing your future.
