Coming down to the end of the month can be a stressful time as you try to pay bills with what’s left of your pay check. Preparing for a new month can mean sacrificing a few things to make sure you can pay for everything you need. If you’re short on money, you may be tempted to forgo something like your car insurance payment to keep on top of some of your other financial responsibilities.

If you are considering going without car insurance, here are a few things you should know before cancelling your monthly payment.

What does your insurance cover?

When you purchase auto insurance, you are trying to guard your vehicle and yourself against financial harm. While you can’t prevent an accident by having insurance, you can mitigate the financial damages that occur to yourself, your vehicle, and anyone else that may have been involved.

Insurance policies tend to offer coverage for the following areas: bodily injury, property damage, collision, personal injury, OTC (other-than-collision), and uninsured and underinsured motorist coverage. Most states require a minimum amount of insurance coverage. Sometimes though, you can also choose to increase your coverage in certain problem areas.

Drivers are required to have a certain amount of coverage for bodily injury and property damage. If you are an uninsured driver, you may have to pay for medical bills for yourself and others involved if there is an accident that is found to be your fault. You’ll also be required to pay for damage that occurred to vehicles and physical property if there was damage from the accident.

Ultimately, your car insurance is around to help protect you in case of an accident. No one wants to be involved in a car accident, and they can’t be anticipated. Having insurance means you don’t have to deal with additional stress should an accident occur.

Driving without insurance

Roughly 14% of drivers in the United States are uninsured, which is illegal. Most states require drivers to carry their proof of insurance with them at all times. Driving without insurance can lead to fines of up to $5,000, jail time, and a suspended license. If you are an uninsured driver and you are hit by an insured driver, they will have to pay for the damages. However, if you are hit by another uninsured driver, you will likely have to sue them for damages.

If you are the cause of an accident and you don’t have insurance, the money you’ll need to pay back for the accident can be taken from your assets, your savings, and your future earnings. You may also find it difficult to buy affordable auto insurance in the future.

With all of these consequences, taking a month or two off of your car insurance can be a much bigger danger than it seems. If you are involved in an accident while you’re uninsured, you could be in debt for much more money than it would have cost to stay insured. Although times can be tight, your auto insurance shouldn’t be the coverage you sacrifice.

 

Want more info to match your need? Please contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.