Who Needs Car Insurance?

Analyze your car expenses and you may find a glaring figure that is associated with the car insurance premiums you are paying. Now, ask yourself, do I need car insurance? Well it depends. It largely lies on the type of driver you are, defensive or high risk. Of the two, the latter obviously needs car insurance coverage since he is most likely prone to accidents and potential injuries.

But for some people, the consistency and use of having car insurance seems to be wearing off. Some are dropping it and deem it as unnecessary, particularly now that the times are hard and everyone is tightening their belts. It is a risk, but for some people, the solution is just to drive safely or limit your trips to avoid needing it.

However, here are some facts you should know if you decide to drop your car insurance:

1. Driving without car insurance is a crime
2. Your auto insurance rates will increase when you reinstate your policy
3. You very well may incur stiff penalties

Hence, given these facts, would it be wise to overlook insurance? While many see it as something that covers the car only, you may end up losing a lot more (not to mention spend more) if you are not aware of the things that can happen if you drop it.

Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to jail time. If you get caught, your car or license plates could be impounded until you can pay the fine. Then, you have to pay another fee to reinstate your registration.

(Source) Press

Tags: Accidents, auto insurance rates, belts, car expenses, car insurance coverage, car insurance premiums, consistency, high risk, Insurance, jail time, license plates, registration source, stiff penalties