Is Auto Insurance in Indiana a Necessity or a Luxery?
While purchasing a car in the state of Indiana, many people see the price of insurance for their new car and consider it a Necessity rather than a Luxury. They think that if they are extra careful while driving and they stay away from busy streets as much as possible that they can go without having insurance and be ok. But it is a well-known fact that auto insurance in Indiana is vital for two reasons: even if you are a good driver, accidents do happen, and it is the law to have current and valid insurance.
It is much more expensive to go without car insurance and save that money than it is to be covered with insurance. Let’s say that you decided to go without insurance so you can save money. In three years you have saved $5,000. You feel like you have made a good decision because you have not got in any accidents and you haven’t had to pay any money
However, after these three years you are driving your kid to school in the rain and you lose control and slide in to the car next to you. It is decided that it is your fault. The car you hit wasn’t very nice, but it was totaled. It was worth $7,000. It was being driven by a mother driving her child to school as well, and because it was severe the medical bill of both of them were $50,000.
Because it was your fault, and you don’t have any help, you are responsible for the total. Was it a good decision to not pay for the insurance for those three years? If you had paid your premiums and kept your policy current, instead of having to pay $57,000 you would only have to pay a small deductable.
The numbers used may seem excessive, but in anything other than a fender bender, these numbers are quite normal. Uninsured motorists have often been forced to sell their houses and other possessions in order to cover the costs of their mistakes. Lives have been ruined and lifestyles changed because of one poor decision. Because of this risk, it is a basic necessity to have current car insurance.
In addition to the costs of being in an accident without car insurance, it is also illegal to drive without it. If the police discover you have been driving without proper insurance, they can take away your license, take away your car, and impose large fines. It is much better to have car insurance to prevent any of these things from happening.
On top of the financial risks that you take in not purchasing car insurance, it is also against the law to drive an uninsured vehicle. If you are caught operating a vehicle without insurance stiff fines can be imposed, your driver’s license can be revoke, and your car can be impounded. Any of these penalties outweigh saving minimal money from not paying for car insurance.
Filed under: Business