Forgoing the decision to obtain car insurance is a deadly move that no driver should ever even think about it. No matter how financially ready you are to pay for damages out of your own pocket at the time of an accident, the financial liability after a wreck is still less when you are insured. Let’s take a look at the costs of being uninsured.
Some states, like Illinois, have negligence laws. With this, you could be sharing the responsibility for a vehicular accident with the other driver even if you aren’t at fault. With car insurance in place, your insurer will pay for the damages on your behalf. But without one, you could be held legally liable.
Other circumstances of car crash also impact the costs. For instance, if you happen to accidentally hit an empty vehicle parked by the roadside, you will be liable for “material damages” and will be responsible for paying the costs of repair. But if you collide with an occupied car and its passengers get hurt, you could end up paying for the material damages and medical costs too.
Additionally, after the accident, any injured victim could take the matter to court. This is for covering expenses that are related to lost wages during the time they are recuperating and unable to report for work. A PIP or personal injury protection is a type of car insurance that could pay for this expense provided you are found at no-fault.
Other related costs
Being uninsured can get you to fall into a financial black hole even with the absence of a car crash. Some state mandates prohibit vehicle ownership without having auto insurance. To reinstate, you will be faced with hefty fees along with some bureaucratic loops that will definitely take time. Likewise, when you finally decide to get insured, you probably will be getting high premiums because of the years you didn’t have coverage.