With So Many Downsides, Why Have Car Insurance?
The law requires car insurance so, as a licensed motorist, I have it and I pay for it as my policy requires. It’s not cheap and I’m well aware of that since my kids have had several accidents. I guess that’s one of insurance’s downsides.
Providing your personal information to the insurance company is another. When you start getting multiple offers through the mail and on the phone, you realize your information has been sold; it’s an irritating downside of any company that practices this.
If you’re a good driver and have never had an accident, you might expect some benefit, right? It doesn’t happen. Problem #3: Everybody continues to pay for insurance even if they’ve been driving for 30 or 40 years without a claim. It really isn’t fair, but probably won’t change.
Can you imagine how much profit the insurance companies made off these individuals? It’s staggering. Of course, other drivers who had numerous or severe accidents eroded that profit for the insurance companies.
Another pitfall of this industry is the recording of guilt or not guilt. Let’s face it, only the people in the accidents really know what happened. The police can come out and invesitgate, but they weren’t there to know. The insurance company will update it’s records and that will haunt you the rest of your life.
One other small pitfall is dealing with the agent. They will be calling you to solicit more insurance, better coverage, other policies. Some of them will even offer money for names of your friends and family, so they can solicit them into new policies as well.
Keeping track of the insurance card can also be trying. A new one (or multiple copies of it) is issued every six months and they accumulate in the glove box with all the other \”necessities\” like tissues, the tire gauge, extra straws, etc. It’s often embarrassing to have to sift through the mess in order to provide the officer (who just pulled you over) with the required information.
Finally, the biggest of the pitfalls of car insurance has to be the uninsured motorist. This is the guy who doesn’t believe in the system, although a necessary evil. He doesn’t purchase it. He doesn’t carry the card. The insurance guy doesn’t know who he is. Of course, he is also the one who sideswipes your vehicle and tries to leave the scene. He doesn’t have any money to even pay your deductible. This guy, while simply trying to save a buck or two, is certainly the one who will have the accident and cause you serious financial troubles.
Filed under: Business