With a Poor Economy, is Auto Insurance in Indiana a Necesity?
When people buy a vehicle in Indiana, they consider auto insurance in Indiana to be a luxury rather than a necessity because they don’t always get in a wreck and because it is so expensive. They often think that they can avoid buying insurance by being extra careful. However it is very important to have insurance because of the financial risks involved with an accident. It is against the law to drive without insurance.
Even though we often think that paying for insurance monthly or bi-annually is too expensive, the alternative is almost always more expensive. Let’s say for example that you go without paying for insurance for two years and because of that you save $2,000. You may think that you have helped yourself by not paying this money but that isn’t true.
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.
There are many types of coverage that one can get. You can choose to pay a little bit more and be covered more extensively. Even if you have minimal insurance you can still be obligated to pay out of your pocket the difference between the coverage you have bought from your provider and the amount awarded to the victims by the state, so be careful in choosing the amount of coverage you have.
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.
In addition to being very risky to drive without insurance because of the costs you may incur, it is also strictly prohibited by law to drive without insurance. If you are caught driving without insurance, you will probably get a hefty fine, and you may also have your license suspended, or be thrown in jail.
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