If you’re like many drivers, you may feel resentful of your auto insurance premiums. Aside from the obvious reason for taking out an insurance policy on our vehicle (it’s the law), there are countless reasons we would choose to do so.
We all think we’re good drivers, don’t we? The raw truth is, we’re not all equally skilled at driving, for many reasons. That, coupled with the fact that we’re also not in control of anything but our own skill and attention and are at the mercy of the weather, other drivers, mechanical failure, or freak accidents, is cause for seeking the protection of insurance.
Hidden Road Hazards
Other drivers may seem okay, but it only takes a split second for the unthinkable to happen. What are the chances these ugly situations could arise? Very high. For example, people with particular health conditions such as the ones below, are potentially at greater risk of causing auto accidents:
- Hypoglycemia
- Bipolar disorder
- Alcoholism
- Depression
- Sleep deprivation
In fact, anyone on medication could suffer side-effects that could render them ineffectual at operating a moving vehicle. We can’t ignore the fact that as we age, our reaction times diminish. The elderly can fail to hear warning horns or to see vehicles in near proximity due to limited peripheral vision or have a heart attack or stroke. Or, it could be as simple as a parent distracted by children in the vehicle. We can’t control our environment and we can’t read the minds of other motorists.
Young or inexperienced drivers are likely to have an accident. They forget to shoulder check and don’t see you in their blind spot. Teens commonly believe they are invincible and that “it won’t happen to me”. “No Fear” is probably the most telling tagline. Teens tend to be overconfident and may not be adept at handling a vehicle at higher-than-posted speeds. They may have other people in the car and become distracted. They may be lighting a cigarette, adjusting a radio station or texting and drift out of their lane. All it takes is a moment for contact with your vehicle to occur, and no matter how experienced a driver you are, you may not be able to avoid it.
You may maintain your vehicle religiously but not everyone does, and tires blow out often. Depending on the speed, kind of vehicle, road conditions, skill of the driver, and traffic density—your vehicle could be a target for a 4,000 pound missile you didn’t even see coming.
All it takes is one poor decision and you could be involved in an accident. The guy next to you may have just realized he’s about to miss his freeway exit and makes a dramatic swerve to get in the exit lane. If he misjudges, there could be contact with other vehicles. Or, if such a driver is traveling at high speed and makes a sudden move, the force could flip him. In the blink of an eye his vehicle could come sliding into your path, on its roof.
Or… your vehicle may be the target of theft. Damages are common to stolen vehicles and you may need that insurance money to restore your pride and joy to its original state or to pay off your loan so you can replace it.
A Blessing… Not a Curse
The possibilities around the need for auto insurance are endless, however, the purpose of this article is not to have you paranoid about what could happen when you’re out on the roads, but to help you realize that insurance is the best way to achieve a degree of peace of mind as a driver; to protect you, your loved ones and others on the road.
No one wants to have an accident, but it happens every day. You’ve heard tragic accounts of how many people die in traffic accidents; it’s just a reality of our life on this planet. It’s very expensive to repair a seriously damaged vehicle, but it can ruin people financially if they have to pay out of pocket for their own, or other parties’ hospital stays and medical treatment.
Law suits abound as a result of innocent traffic accidents and for those without the protection of an insurance policy, it could mean losing all their personal assets, including home, stocks, retirement funds—everything.
Even if you only caused property damage with your vehicle you could receive some enormous bills in the mail. Your insurance policy could cover that. If your vehicle is beyond repair and you have a bank loan to pay for it, wouldn’t it be ironic if you still had to make the payments on a vehicle you no longer have because it was destroyed in a traffic accident? That’s where auto insurance comes in. You may not need it often, but when you need it, you really need it.
Bottom line, in nearly every state in the U.S. auto insurance is mandatory. You won’t even be able to register a vehicle for public use without proof of adequate coverage. If you don’t secure coverage for your vehicle, you could incur fines, lose your license, or—heaven forbid—be incarcerated, if you’re caught. If you cause an accident and have no insurance coverage, you could end up in court and be on the losing end of a law suit. It could ruin your life.
If, after considering all the above, you’re still resenting the need for auto insurance, think of your policy as a forced savings plan with astronomical compounding abilities. You put relatively little away, but when you need to make a withdrawal, it’s often far more than you ever put in that savings account.