We’re all trying to save money these days. Whether you are driving your own vehicle or a rental, driving without proper car insurance is dangerous to your financial health.
You might think are saving money, but an accident – especially one with injuries – could wipe out your life savings. Or worse.
Dangerous Misconceptions About Driving Without Insurance
Insurance industry surveys indicate that one in seven drivers lacks car insurance.
Reasons range from wanting to save money to believing you are such a safe driver that you won’t be in an accident. That’s short-sighted and foolish.
The cost of repairing a car can be in the thousands if the transmission, body, or engine components are damaged in an accident.
Accidents that cause property damage or personal injuries can be even more costly, with average property damage totaling $7,500 and average costs per injury reaching $61,600.
Simply, car insurance premiums are a bargain compared to the cost of an accident. Even a minimalist policy offers more protection than no policy at all.
The average annual car insurance policy costs less than $1,500 per year, but if you check around, you can find cheaper car insurance.
Many drivers believe serious accidents are fairly uncommon, but that just isn’t true. One insurance industry estimate indicates the average driver will make a claim at least once every 20 years.
That means you are likely to make three or four claims in your driving lifetime, which doesn’t include the minor parking lot dings and dents you don’t claim.
All it takes is one mistake or misjudgment to cause an accident. Uncontrollable factors such as weather, road conditions, and personal medical conditions can also contribute to an accident.
Accidents happen, and when one does, a safe driving record with no financial protection is useless.
How to lower your vehicle insurance costs
Shop around to find the most affordable policy. Get at least three quotes.
Review your policy annually. You might need more liability coverage to include a new teen driver, or less theft or damage coverage as your vehicle gets older and less valuable.
Carry only state-mandated minimum coverage amounts as a starting point. My son saves hundreds of dollars a year by not paying for theft or damage on older model vehicle.
Increase your deductibles. A $1,000 deductible could save several hundred dollars a year in policy costs over a $250 deductible.
Bundle your policies. Ask an insurance agent about discounts for bundling policies, taking defensive driving courses, or owning a low-mileage car.