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 two years let's say you are driving in poor weather and you accidently slide
into another car. It is your fault and the other car is totaled. The car is worth $12,000. Three
people are hurt and have extensive medical bills totaling 75,000 dollars. Because you slid into
them, it is your fault and you are legally obligated to cover all costs.
How would you
evaluate your decision made two years ago to not pay car insurance? If you would have maintained a
decent insurance policy for those two years, your insurance provider would have covered all the
expenses and all you would have had to pay would have been a minimal deductable. Is paying $100,000
because you wanted to save $2,000 worth it?
Most people don't have access to that kind of
money so they are forced to liquidate all of their assets, selling their homes, cars, and property.
People often have to change their lifestyle because of this poor decision. With the risk of getting
in a wreck, it is vital to have car insurance
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.
Even though there are substantial financial risks related to not having
insurance, it is also illegal to drive without insurance. Heavy fines, suspension of your license,
and even jail time are a few of the possible penalties for breaking this law.
