Insurance fraud is not a victimless crime. And, with higher risk comes higher cost. While a large number of drivers are not insured, the rest of us are paying extra for underinsured and uninsured motorist coverage. It is understandable that some drivers simply cannot afford automobile insurance. Some states have programs to help cover the high cost of insurance. Surely there is a qualification process, but it’s nice to know there’s help out there. Getting caught without liability insurance coverage is a serious violation, one that comes with strict penalties, ongoing surcharges and a permanent smudge on your driving record. In addition, high-risk drivers, especially DUI and DWI offenders must maintain an SR-22, which is also very pricey.

If you are paying a car loan, you must keep collision insurance until the car is paid off. Unfortunately, most people choose to change their coverage to liability only, once it is paid off to suit their budget. But, in the event of a collision, if you were at fault, your insurance would only pay for the other car’s repairs and not yours. There again, we’re looking at a higher cost issue. Paying for your own repairs or possibly having your car totaled, now you’re without wheels. You have to depend on rides, use the local transit system (if there is one available) and may lose income as a result. It could be a spiral downward, and just because you couldn’t or wouldn’t afford liability insurance.
Although you must have insurance, you don’t have to pay Neiman-Marcus prices for it. Most drivers are eligible for insurance discounts, and don’t even know it. You can receive benefits for merely driving safely or doing well in school. Apparently there are many things that determine your insurance rates. What you drive, your age, your gender, your zip code, your marital status, whether or not you own or rent your home, if you have any points or tickets on your driving record and even your credit score.

Until next week…

Daun Thompson
Writer / Comedienne / Artist

Automobile Insurance – Comedy Defensive Driving