Oh the dreaded car insurance. You are crazy if you drive your vehicle without car insurance on it. At the least you must have collision coverage or you could find yourself in more debt that you could imagine. Not to mention you could lose your drivers license so you will find getting to work to pay off the large fines for not having car insurance, will be a whole lot harder.
As I said, collision car insurance is about the least expensive coverage you can get. That means, however, that you must pay for all repairs to your own vehicle. The car insurance company will only cover the other vehicle owner’s claims. If you are in a single car crash and there is no one claiming any damages then you might as well not even bother calling the insurance company to file an insurance claim, because with collision coverage, the cost is yours. Also, if your car is a write-off you will also get nothing from the insurance company when you have collision coverage only.
So if you have a 20 year old Nissan sitting in the driveway by all means just get collision and save yourself a bundle of cash. Put it aside to buy a new ride when the old girl finally kicks the bucket. However, if you have a new car you may want to consider a bit more coverage, talk to your insurance broker. Now if the new car is still being paid for on a monthly basis you will have to have full coverage. No loan company would allow you to have anything less. This will insure that they will receive full repayment of the loan if some horrible event, such as write-off or theft without recovery, should happen to the vehicle.
As you know, it is against the law to drive without auto insurance. You might want to check with your local government to know what is the legal minimum coverage accepted by authorities. Make sure you don’t start that ignition unless you have it.
If you get stopped by police for any reason they will ask you to produce proof of insurance. If you can’t show them proof you will be fined. This could be as high as $3500.00 in most cases. The police will have your car towed away on the spot also. You will have to pay the towing charges and the impound charges. You will not be allowed to remove your car from the impound lot until all costs are paid and proof of insurance is shown. A real insurance problem.
Now should you have a crash involving private property or another vehicle, and you don’t have car insurance, you can kiss your life good bye for a while. The offended parties can sue you for damages and if a judge awards damages, you could find your wages garnisheed for years to come. You could lose everything you have worked hard for. That would be a stupid thing to do to drive without car insurance.
Now for those lucky people that can afford top notch coverage I say go big or go home. Go for a great package but there is no reason why you can’t try to save a few dollars when you can. For instance you can get full car insurance coverage that will offer benefits for every year that you are accident free. Insurance providers will offer incentives such as gradually diminishing the deductible on your policy or dropping their fees by a certain percentage each year.
With the highest coverage you can get full replacement value. So if your vehicle is a write-off then you get what you paid for it. Along with uber great conveniences such as a rental car until yours if fixed or replaced and accommodation coverage should loss occur away from home.
No matter what you can afford it is imperative that you have car insurance before you pull that car out of the driveway. Don’t risk your license and your freedom.