View Full Version : Is it a bad idea to not buy car insurance?
libertybrewcity
08-01-2011, 02:08 AM
I'm in desperate need of a car. I'm in my early 20's so auto insurance rates can be anywhere from 1200 to 4000 per year! What is the worst that could happen if I don't purchase it.
Also, I wouldn't be driving everyday. I only need it about 2 days a week for a very limited amount of time. I live on the outskirts of a city, no night driving, no drinking and driving obviously.
Lothario
08-01-2011, 02:24 AM
Insurance is the only thing you buy hoping you never need to use it. If, god forbid, you ever need it and don't have it, guys with guns will make sure you are aware of your mistake in a decidedly unpleasant manner.
Unelected
08-01-2011, 02:33 AM
Insurance is the only thing you buy hoping you never need to use it. If, god forbid, you ever need it and don't have it, guys with guns will make sure you are aware of your mistake in a decidedly unpleasant manner.
What Lothario is trying to say is that you should buy a gun instead of buying car insurance. A nice Glock will run you about $400, which is far, far less than the cost of insurance.
libertarian4321
08-01-2011, 02:47 AM
I'm in desperate need of a car. I'm in my early 20's so auto insurance rates can be anywhere from 1200 to 4000 per year! What is the worst that could happen if I don't purchase it.
Also, I wouldn't be driving everyday. I only need it about 2 days a week for a very limited amount of time. I live on the outskirts of a city, no night driving, no drinking and driving obviously.
To save money, just buy the required liability insurance with the highest deductible possible. Collision, comprehensive, and a lot of the other policies they will try to sell you are not required.
aGameOfThrones
08-01-2011, 03:01 AM
I'm in desperate need of a car. I'm in my early 20's so auto insurance rates can be anywhere from 1200 to 4000 per year! What is the worst that could happen if I don't purchase it.
Also, I wouldn't be driving everyday. I only need it about 2 days a week for a very limited amount of time. I live on the outskirts of a city, no night driving, no drinking and driving obviously.
Move to puerto rico, buy a clunker(cash obviously), and register it with the state. By registering with the state you have to pay the compulsory insurance they provide(yearly fee only). I'll be subsidizing you since I have private insurance(I have the state's too (compulsory), but can't use both) .
AZKing
08-01-2011, 03:06 AM
The worst? Big fines (several hundred $$), loss of license, jail time in some cases. It depends on your state's laws. I'm not sure what VA's laws are for insurance. The biggest problem with not buying insurance is that a cop may pull you over for something petty (taillight out, license plate light out).
That said, if you don't have any prior at-fault accidents/tickets on your record, liability insurance shouldn't cost that much.
BamaAla
08-01-2011, 03:12 AM
The worst? Big fines (several hundred $$), loss of license, jail time in some cases. It depends on your state's laws. I'm not sure what VA's laws are for insurance. The biggest problem with not buying insurance is that a cop may pull you over for something petty (taillight out, license plate light out).
That said, if you don't have any prior at-fault accidents/tickets on your record, liability insurance shouldn't cost that much.
I can think of a lot worse than that.
To answer your question: yes...not buying insurance is a bad idea. As a previous poster said, you can just go with liability and a high deductible if you intend to buy a car outright. If you intend to finance, most financiers will require that you carry full coverage until you pay the note off. Best of luck!
IDefendThePlatform
08-01-2011, 03:37 AM
To save money, just buy the required liability insurance with the highest deductible possible. Collision, comprehensive, and a lot of the other policies they will try to sell you are not required.
+1
tangent4ronpaul
08-01-2011, 04:03 AM
Some states will pull your registration if you don't have insurance. That can lead to your car being towed and impounded.
Can you get in under your parents insurance? That's usually a lot cheaper. Also they usually give deep discounts if you go through a driver training class.
If you only use a car rarely it might be worth looking into renting. Car rental places sometimes at least cover insurance on their vehicles.
Alternately - in the summer at least, insurance on a moped should be a lot cheaper. Limited speed, incapable of messing up someones car that badly, low replacement cost...
Also - bicycles don't need insurance. Neither do horses, but they have their own issues and costs. Cross country skis even... skateboard.
But yeah, liability only and high deductible is the lease expensive.
-t
Elwar
08-01-2011, 05:04 AM
It is not a bad decision if you live in New Hampshire and you put the money you would have spent on car insurance into a CD or something.
Insurance companies make money off of you. On average you will put more money in than you take out. So in the long run, insurance is not a good bet.
New Hampshire is the only state that does not force you to buy insurance.
Diurdi
08-01-2011, 05:28 AM
Insurance companies make money off of you. On average you will put more money in than you take out. So in the long run, insurance is not a good bet.
The question is if you will go bankrupt if you suddenly have to pay tens of thousands. If you have alot of money car insurance is probably not worth it. If you don't, it usually is.
oyarde
08-01-2011, 10:35 AM
I would not suggest going without it .
sailingaway
08-01-2011, 10:41 AM
The less you can afford it, the more you should buy it, at least some. Sorry, but that is my opinion. But shop for it. Elwar is right that if you have the money, putting it in a CD or money market is better long term, if the law doesn't require it. But if you get hit before that builds up, or your brakes bust you have to think how that would impact you. (My brakes went out going down the grapevine in California once -- I was able to not hit anyone at the cost of destroying my transmission, but I easily could have done with no fault to me.)
fisharmor
08-01-2011, 10:51 AM
It is a good idea not to split infinitives.
Along those lines, there is a good student discount with most carriers.
There are often discounts for taking CPR classes.
If you take driving school voluntarily I think that gives a discount too.
I once knew a man who claimed to have gotten a discount for being an Eagle Scout.
Of course they don't advertise this stuff; you have to do some homework.
In Virginia, I'm pretty sure they won't let you register the car until you have insurance on it.
I learned to drive in Virginia, and let me tell you, you're either out in the sticks and run the risk of hitting wildlife, or you're near the city and some of the worst traffic in the country.
You're going to get in an accident at some point.
I know a guy who lives in Brookneal, which is as armpit as you get here - in 96 or so, he hit a deer, tried to veer right to get off the road (aka "he did the right thing"), hit a bump and flipped his truck onto an oncoming car and killed a 16 year old girl.
Was he at fault? No, not by any sane rationale. But are you going to trust the state to get it right? I sure as hell don't!
Insurance is your first line of defense against getting pegged for something you shouldn't be held accountable for. USE IT.
Acala
08-01-2011, 10:52 AM
If you have nothing to lose financially - no house, no savings, no income worth garnishing, and there are no criminal penalties for going without, then there is not much downside for you. If you seriously damage somebody and you have nothing, they won't even bother to sue you most of the time. Still, I would suggest finding alternate transportation rather than driving without insurance. It IS rather irresponsible in that you could easily damage somebody and be unable to pay for the damage you have done. You wouldn't want that.
erowe1
08-01-2011, 10:59 AM
Given your situation, have you considered just getting a scooter?
goRPaul
08-01-2011, 11:06 AM
It is a good idea not to split infinitives.
+rep for grammar police
They probably won't let you register it without proof of insurance.
Honda or Kawasaki dual-purpose.
- insurance cheaper than any car
- better gas mileage than any car
- funner to drive than many cars
http://pictures.topspeed.com/IMG/crop/200811/honda-crf230m_460x0w.jpg
New will run you $4-$6k. A few grand for used.
libertarian4321
08-01-2011, 02:11 PM
Honda or Kawasaki dual-purpose.
- insurance cheaper than any car
- better gas mileage than any car
- funner to drive than many cars
http://pictures.topspeed.com/IMG/crop/200811/honda-crf230m_460x0w.jpg
New will run you $4-$6k. A few grand for used.
The best thing about one of these: If you have an accident on one, you'll never have to worry about whether your insurance was good anyway, because dead men have no worries...
angelatc
08-01-2011, 02:17 PM
New Hampshire is the only state that does not force you to buy insurance.
Wisconsin allows you to post a bond in lieu of buying insurance.
angelatc
08-01-2011, 02:19 PM
The question is if you will go bankrupt if you suddenly have to pay tens of thousands. If you have alot of money car insurance is probably not worth it. If you don't, it usually is.
I think it's just the opposite. If you hav a lot to lose, then insurance is a good idea. If you've got no assets the courts can attach, then you might as well go bankrupt.
Of course you should buy car insurance are you kidding? It's this kind of nonsense that's gets every one of us labeled as "fringe".
pcosmar
08-01-2011, 03:12 PM
What is your reason for insurance?
State requirement,- Then it is required. You have no choice. buy the cheapest you can find at the minimum legally required.
If it is a NEW car and you are protecting your investment (cars are a poor investment) you will need a good comprehensive policy.
Unless you are a poor driver or horribly unlucky you will never need it beyond meeting the legal requirements.
ammorris
08-01-2011, 03:27 PM
I think it's just the opposite. If you hav a lot to lose, then insurance is a good idea. If you've got no assets the courts can attach, then you might as well go bankrupt.
This. I'm 23 years old and finishing college. I don't own anything. I have no assets and minimal income. If I am without insurance and something happens, I have nothing to lose. Unfortunately, the state has decided that I do not have a choice in the matter, so my wife and I will be paying $2000/year for something that isn't likely to benefit us in any meaningful way.
By the way, looking for minimum coverage is a good plan, but check around to see if it is actually cheaper than a more comprehensive policy. I just got a quote from Geico that is substantially cheaper than what I would pay for minimum coverage with Safe Auto, and the coverage is much more extensive. Kind of odd.
Agorism
08-01-2011, 03:30 PM
Some states require it. IDK how many don't.
BTW- if you have kids with that wife of yours, you're going to owe a lot more than 2K a year for car insurance.
tangent4ronpaul
08-01-2011, 04:07 PM
Some states require it. IDK how many don't.
BTW- if you have kids with that wife of yours, you're going to owe a lot more than 2K a year for car insurance.
Do you mean kids of driving age under your policy or younger ones?
Generally being married lowers your rate as they figure you have more to loose and will be more careful. I would think the same would apply for kids.
-t
MelissaWV
08-01-2011, 04:40 PM
I am cringing at the number of you who've suggested getting a "liability policy with a high deductible."
No.
Liability-only policies do not have deductibles. Deductibles come into play when you have comp/coll coverage. If your car is older (even slightly older) and you do not owe money on it, get the lowest limits you can, and nix the comp/coll coverage. You will be left with property liability, personal liability, some basic personal injury protection, and under/uninsured motorist coverage.
As to Pete, you'd be surprised just how unlucky someone can get. I have had two cars be total losses (thanks, mdh) and been in a couple of other wrecks that would have wiped out my finances without insurance. None of them were my fault, but I would have been left footing the bill.
Ronulus
08-01-2011, 04:49 PM
Unfortunately, the state has decided that I do not have a choice in the matter, so my wife and I will be paying $2000/year for something that isn't likely to benefit us in any meaningful way.
Shop around, me and wife are both covered under 2 vehicles for 1600$ a year. It would be about 1400$ but I got into an unfortunate accident so i lost my 'safe driver' bonus.
Personally I find insurance to suck in the way that you may never get anything out of it. However it has come in handy twice, accident where someone slammed on their brakes at a green light, and repairing massive hail damage. Then again my sister in law got tboned by a young college student with no insurance and no money. Although her car was in really good condition her insurance company only gave her like 4,000$ for it. So she had to spend out of pocket to buy a worse car with many more miles on it.
pcosmar
08-01-2011, 04:53 PM
I am cringing at the number of you who've suggested getting a "liability policy with a high deductible."
No.
Liability-only policies do not have deductibles. Deductibles come into play when you have comp/coll coverage. If your car is older (even slightly older) and you do not owe money on it, get the lowest limits you can, and nix the comp/coll coverage. You will be left with property liability, personal liability, some basic personal injury protection, and under/uninsured motorist coverage.
As to Pete, you'd be surprised just how unlucky someone can get. I have had two cars be total losses (thanks, mdh) and been in a couple of other wrecks that would have wiped out my finances without insurance. None of them were my fault, but I would have been left footing the bill.
It happens, and basic coverage is not a "bad thing" i an just opposed to Manditory Insurance.
Michigan is a NO FAULT state. If I was to put Full Coverage on our old car and someone wiped it out I would be Shit out of Luck.
It would not replace the car nor repair it. I would get "the value" as determined by the Ins Co.
the value being less than a monthly payment.
I carry state minimum, If i am hit the car is still a loss, but I have saves $$$$ in coverage cost each year.
And I fix things.
MelissaWV
08-01-2011, 05:02 PM
You wouldn't have been able to fix these two...
The first one was a lovely blue Integra I had the bad fortune to allow my then-boyfriend to drive (without me in it). He took the speed limit on the yellow sign on a rain-slicked, sharp-turn off ramp to be a suggestion. It turns out going 60 on one of those is a good way to jump the car onto the guardrail and allow its own inertia to split the car in two.
The second one was a less lovely black Alero that I was driving through a hurricane to pick up my then-fiancee. He wanted to work that day, and was just shocked to learn that once DC was closed due to weather, cabs and Metro alike were not running. I was driving and the combination of a slight dip in the roadway, the wind, and the incredible rain, caused my car to go from 40 miles per hour in a straight line to a slightly airborne missile once again impacted a dozen times by a guardrail as I spun and slid and wagged against it. A very nice Secret Service guy who'd been going the other way made a major U-turn and helped me out. I don't really think that one could have been fixed, either; it was a rounded paperweight.
Gap insurance meant the loan (yes, it was actually financed) got paid off and I was none the worse for anything on it. I got another car later, starting from scratch.
pcosmar
08-01-2011, 05:10 PM
You wouldn't have been able to fix these two...
Yeah, anything can be fixed, but sometimes it's not worth it.
;)
But I did this one for an "Insurance guy" because his company totaled it and he wanted to keep it.
http://pcosmar.blogspot.com/2007/10/back-to-grind.html
I have fixed worse, including a Garbage truck that was rolled. What a stinky mess that was.
Diurdi
08-01-2011, 05:18 PM
I think it's just the opposite. If you hav a lot to lose, then insurance is a good idea. If you've got no assets the courts can attach, then you might as well go bankrupt. Yeah, avoiding responsibility is the right thing to do. I don't know how the US system works, but in Finland you're liable until you've repaid.
Unless you think your risk is higher than what the insurance company is calculating for you - the only reason to have car insurance is to avoid the risk of a sudden spike it expenses. If this sudden spike can lead to catastrophic consequences for your personal economy, it may very well be worth paying a premium to mitigate or remove this risk.
If the premium is too high according to your own calculations, then you may want to opt-out and just face the risk.
TomtheTinker
08-01-2011, 06:13 PM
Of course you should buy car insurance are you kidding? It's this kind of nonsense that's gets every one of us labeled as "fringe".
Place what ever label you want on the guy..the fact is some group of people are forcing him to purchase a service in which he doesn't want and can not afford. some people choose to be "fringe" others "sheep"...its a personal choice.
Johncjackson
08-01-2011, 09:21 PM
Of course you should buy car insurance are you kidding? It's this kind of nonsense that's gets every one of us labeled as "fringe".
SHould and SHould Be Required are two different things. I don't believe in mandatory car insurance anymore than I believe in mandated health insurance. Call me "fringe" for that.. There are certainly many cases in both situations where it might make sense to not carry any, but for the most part I would say its a good idea.
As far as auto insurance goes, a big part of the "should" comes from the fact in many states driving without insurance is treated as a worse offense than actually doing something harmful. I do, because I'd rather pay the couple hundred bucks every 6 months than risk being fined daily for not having insurance, being pulled over and ticketed for not having it,etc.
pcosmar
08-01-2011, 10:03 PM
As far as auto insurance goes, a big part of the "should" comes from the fact in many states driving without insurance is treated as a worse offense than actually doing something harmful. I do, because I'd rather pay the couple hundred bucks every 6 months than risk being fined daily for not having insurance, being pulled over and ticketed for not having it,etc.
Yup, I generally put the Protection racket in the same category with extortion.
Place what ever label you want on the guy..the fact is some group of people are forcing him to purchase a service in which he doesn't want and can not afford. some people choose to be "fringe" others "sheep"...its a personal choice.
Did I say it should be mandatory? Who's the sheep now?
SHould and SHould Be Required are two different things. I don't believe in mandatory car insurance anymore than I believe in mandated health insurance. Call me "fringe" for that.. There are certainly many cases in both situations where it might make sense to not carry any, but for the most part I would say its a good idea.
As far as auto insurance goes, a big part of the "should" comes from the fact in many states driving without insurance is treated as a worse offense than actually doing something harmful. I do, because I'd rather pay the couple hundred bucks every 6 months than risk being fined daily for not having insurance, being pulled over and ticketed for not having it,etc.
Another sheep who loves assuming. When does should mean mandated? The movement fails again. The only people who logically shouldn't buy car insurance are the rich who can not only afford to pay for themselves a new car and their own doctor bills but those of the other party as well, even then, it's probably not worth the risk.
heavenlyboy34
08-07-2011, 03:57 PM
Yeah, anything can be fixed, but sometimes it's not worth it.
;)
But I did this one for an "Insurance guy" because his company totaled it and he wanted to keep it.
http://pcosmar.blogspot.com/2007/10/back-to-grind.html
I have fixed worse, including a Garbage truck that was rolled. What a stinky mess that was.
You do awesome work! :cool: /impressed
pcosmar
08-07-2011, 04:24 PM
You do awesome work! :cool: /impressed
Thank you.
I just wish I had more to do. (like steady employment)
Austrian Econ Disciple
08-07-2011, 04:56 PM
Another sheep who loves assuming. When does should mean mandated? The movement fails again. The only people who logically shouldn't buy car insurance are the rich who can not only afford to pay for themselves a new car and their own doctor bills but those of the other party as well, even then, it's probably not worth the risk.
Or someone who drives maybe 5,000 to 6,000 miles a year in a low traffic area. Besides, I'll mitigate my risk by driving safely and pocketing the 2000$+ a year I am extorted by the State to give to some goddamn insurance companies. I can't wait to move to NH and keep my money instead of it being blithely stolen. The risk I assume is not commesurate with the amount I spend on insurance and I have USAA. It's lunacy. I could have bought an all new car by now, and I am one of the safest drivers you will meet. No Fault is also one of the most idiotic things there is in this country.
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