Car Insurance vs. Out-of-Pocket: the Decision is Yours

August 31, 2010 | Posted By: Stephen Cline
You're not invincible. Car crashes happen. Although some states do not require one to purchase car insurance in order to own and operate a vehicle, having the peace of mind that someone has your financial back in the event of an accident is worth the monthly payments.



Say you're on your way home from work in rush hour. Your spouse calls your cell to remind you to pick up fresh basil for that new recipe that's been posted on your kitchen bulletin board for weeks. You fumble to find your phone, and in the second that you look down into your bag, the person in front of you comes to a stop - BAM. Fender bender. Sure, it's not that serious, but without car insurance, this momentary lapse of attention to the road can cost upwards of $600 in damages - not to mention any additional fees (sometimes over $500) that could accrue do to driving without insurance.

And this is just for a fender bender. Monetary fees increase as the amount damages to the car or drivers/passengers do.

Car insurance is a monthly expense that most people work into their budget. The average insurance premium runs a little over $1,500 a year - compare that to the $4,000 fee (and that's being generous to the at-fault driver) that one could accrue in the event of an accident, and the decision seems to make itself.

Or you could just tell your spouse that basil is expensive this time of year. It's - er - out of season. Yeah, stick with that.
Share this:
Comments
August 31, 2010 | Posted By: Gbcue
The infographic doesn't go into how much it will cost you to repair the other party vehicle, medical bills (for either party), 'pain & suffering', etc!
September 3, 2010 | Posted By: robby69
Go without collision coverage at your own RISK. Go without liability coverage at your own PERIL.
October 18, 2010 | Posted By: vancejeffers
I would risk my wife’s anger to picking up the cell phone call while driving. Distracted driving is a big no-no!

Source:
http://hartfordauto.thehartford.com/Safe-Driving/Car-Safety/Driving-Safety/cell-phone-laws.shtml
October 21, 2010 | Posted By: turtlebug
In this litigious society, anyone with assets would be a fool not to purchase automobile insurance (unless he's wealthy enough to self-insure).
November 19, 2010 | Posted By: BigBoyMichigan
Here is how I saved money. I bought my dad's old car for $2,000.00 on a 1998 van. I keep the van and insurance in his name and since he has homeowners and another car in his name and him with points on his driving record and being a senior citizen his car insurance is cheaper. So my insurance cost that I pay him is only $42.00 per month for No-Fault Insurance (Your Fault is my fault Insurance, lol).
November 19, 2010 | Posted By: BigBoyMichigan
Here is how I saved money. I bought my dad's old car for $2,000.00 on a 1998 van. I keep the van and insurance in his name and since he has homeowners and another car in his name and him with No points on his driving record, Being a good driver and being a senior citizen his car insurance is cheaper. So my insurance cost that I pay him is only $42.00 per month for No-Fault Insurance (Your Fault is my fault Insurance, lol).
December 8, 2010 | Posted By: williwilli
I am very glad to find this post. I am very thankful for this information.
December 8, 2010 | Posted By: williwilli
I am very glad to find this post. I am very thankful for this information. Thanks.
January 12, 2011 | Posted By: ElephantNest
Upwards of $600??

What in the Hell could someone rearend and only do $600 of damage?? A 1972 Pacer?

To just PAINT the bumper of a car is close to $600. Get real.
January 12, 2011 | Posted By: ElephantNest
Upwards of $600??

What in the Hell could someone rearend and only do $600 of damage?? A 1972 Pacer?

To just PAINT the bumper of a car is close to $600. Get real.
January 20, 2011 | Posted By: yasmine14344
nice
Post A Comment
Log in using Facebook


TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014