According to a study by the Insurance Information Institute, 1 in 8 drivers on the road are uninsured. When you do the math, that’s a huge number! Why does it seem like more and more drivers on the road are deciding to forego car insurance? Today, H&K Insurance is going to look at why people drive uninsured and why these reasons might be short-sighted and might even be based on incorrect information.
By far the most cited reason for not having auto insurance is the cost, a trend that rose dramatically in recent years with the Great Recession. While people still needed their car to go to work or haul groceries, many decided that they could save money by cutting out their car insurance premiums.
The problem is that the penalties for driving uninsured are worse than paying for the insurance. Putting aside a situation where you get into an accident and have to pay out of pocket for repairs and medical bills (yours or others involved), driving uninsured also carries steep fines and a loss of your license. You also may be surprised by how affordable car insurance can be. Get a quote from H&K Insurance today to find out.
We have all made bad decisions when we were young: it’s the combination of a lack of experience and the invincibility of youth. This is true of many things, including driving uninsured. Since youth have no point of reference for the consequences or costs of an accident (or just being pulled over), they are less likely to take it seriously.
The problem is that this same line of reasoning is why youth are also statistically more likely to get into accidents or make decisions that would get them pulled over (such as driving under the influence). Which means them (or their parents) suddenly having to pay out of pocket.
Some people think that the cost of being insured is more than the cost of getting caught being uninsured. For them, it isn’t the rashness of youth: it’s a calculation. But is it an informed calculation?
The problem is, according to ValuePenguin, the cost of getting caught without insurance in Massachusetts is always equal to “one full year premium of compulsory insurance” or the fine, whichever is higher. On top of that, your license is suspended for 60 days to a year, with a $500 reinstatement fee. There can even be jail time. And that’s all assuming no one or their car got hurt.
Finally, there’s the thought that if the other driver has insurance, there’s no need for you to carry it: after all, their insurance will cover their damages, right? This isn’t only selfish, as your insurance is to help them pay when you’re at fault… you’re also wrong.
The problem is, that’s not the case, unless the insured driver has uninsured motorist coverage as part of their policy. If the uninsured is at fault, the other driver may have to take them to court to pay for medical bills and car damages, resulting in a legal battle with more and much higher costs.
If you think these are all very good reasons and you need car insurance, contact the H&K Insurance Agency. As an independent insurance agency, we can help you find the plan that fits your needs and budget. If you’re looking to protect yourself from uninsured or underinsured drivers, we also provide those coverages.