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So You Think Auto Insurance Is Expensive? Here’s The Cost Of Not Having It!

28 August 2013 No Comment

So You Think Auto Insurance Is ExpensiveMany drivers bemoan the fact that they have to pay for auto insurance. While it may not be ideal to pay for something you may never use, and while there are affordable auto insurance options in the market, what are the costs of not having auto insurance? Let’s take a look at what expenses you could be facing if you were ever in an accident or caused damage with your vehicle while not carrying auto insurance.

1) You Will Pay For The Damage To Your Car

Your insurance company typically pays for the damage done to your car and any other car involved in a crash that you cause. If you don’t have insurance, you will pay for damages that could easily exceed $10,000 depending on how many cars were involved in the accident.

2) You Will Pay Medical Bills For Anyone Hurt In A Crash

Standard minimum insurance policies pay for a good chunk of any costs related to bodily injury following a crash. You could be on the hook for hospital bills as well as funeral costs if you kill somebody in your car. A stay at the hospital for someone without medical care could easily cost $50,000 or more.

3) You May Be Liable For Replacing Personal Property

Say a laptop was damaged in an accident that you caused. You will have to pay to replace that laptop because you are the one who caused it to be broken. While it may only cost you $500 to replace it, that is a cost you can easily avoid with a basic insurance policy.

4) You Will Be Fined For Not Having Insurance

You will be fined for not having proof of insurance. The amount of the fine varies depending on what state you live in. However, you can expect to pay at least $100 or more.

5) Your Car Will Be Impounded If You Are Caught Driving Without Insurance

Some states will impound your car if you are caught driving without insurance. Expect to pay at least $75 a night or more depending on where you live and how long your car is impounded for.

6) You Will Pay For Your Own Attorney To Defend Yourself Against Legal Action

Your insurance policy may cover legal representation if you have to go to court. Unfortunately, you will be paying for this yourself if you don’t have auto insurance. You could be paying as much as $150 an hour for a good lawyer.

7) You Will Pay For Your Own Rental Car While Your Car Is In The Shop

A rental car is going to be necessary while your car is in the shop. That could cost you as much as $100 a day or more. If you had insurance, your costs would be covered for up to 30 days.

8) You Will Pay For Any Real Property Destroyed In A Car Accident

What happens if you destroy a house or tear up a yard in a car accident? The answer is that you will pay for the cost to repair the damage. That will cost you several hundreds or thousands of dollars.

Paying for auto insurance may seem like a drag. However, you are going to bankrupt yourself rather quickly if you get into an accident during a time in which you don’t have coverage. The lesson is that you should buy a good policy and be thankful that you have it if you ever need it.

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