Buying Your First Auto? Why Insuring Makes Financial Sense

BY Editor

Are you in the market for your first car? If so, you should be aware that the total cost of owning your car involves more than the monthly payment that you will make on that car. Drivers who haven’t thought about insurance for their car are making a big, HUGE mistake. Let’s get into the details of answering the “why?”

It’s Against the Law Not to Have Insurance for Your Auto

If you are thinking about driving your car without insurance, you should know that what you are doing is against the law. Drivers in all 50 states must have a minimum amount of general liability insurance if they want to drive their cars. Anyone who is caught driving without insurance could face a serious fine as well as have their registration revoked. It could cost as much as $100 just to register your car after you do get auto insurance. But these miniscual costs are dwarft by the fees/fines/expeditures that come by not getting these things done prior to actively driving your vehicle.

You Will Pay for the Damage 

In the event that you are involved in a car accident, you will be responsible for paying for all of the damage that occurs in the accident. You will have to pay for your own car, the damage caused to any other cars as well as any medical expenses that those injured in a crash incur. If you damage any property, you will be responsible for paying to replace that as well. Depending on how much damage is done, you could lose your house, your savings account and all of your other assets to pay for the accident.

You Could Lose Your Job

If you don’t have a car, you may not be able to get or keep your job. Unless there is a reliable public transportation system where you live, you won’t be able to get to work at a consistent time each day. While you could ask a friend or family member for a ride, you can’t expect others to drop everything to make sure that you get to work on time.

You Could Lose Your House or Apartment

Without a job, you could face eviction from your apartment or a foreclosure on your home because you won’t be able to make your housing payment. If you are evicted or foreclosed upon, your credit could suffer. This could make loans more expensive in the future or make it impossible to get a loan.

Failing to insure your car could cause more financial damage than you could possibly imagine. If you are at fault for an accident, you could face thousands of dollars in damage payments. Those payments could cause you to lose your car, lose your job and lose the ability to live your life all worry-free because you didn’t think about getting auto insurance to protect yourself and your sweet ride! No one ever wants to be cuaght with their pants down without auto insurance — just get insured and save your self the hassle!