In the United States, every state requires that the residents have car insurance except for New Hampshire. This state does postulate that insurance is required for some individuals. Despite the fact that this is the only state in which you could possibly have a car without car insurance, many people in other states take advantage and do not purchase car insurance for themselves. According to USA Today, approximately one out of every seven drivers does not have car insurance. Unfortunately, when people choose not to have insurance, the price goes up for everyone. Why does this occur?
Paying for Damages
Let’s say that you are involved in an accident with another person, and the accident is entirely the other person’s fault. However, that individual does not have car insurance. Despite this fact, you are still going to have to pay for the damages to your vehicle. This money might come out of your pocket. It can also come from the insurance company, but then your premium is likely going to go up.
A Cost for All
This premium does not just affect you. Due to the fact that so many people are driving around without insurance, companies generally have to raise their premiums. Even if you have never caused an accident or received a moving violation, the premium could be much higher than you expected. Insurance was created to cover the costs of the person who is insured; however, when people take advantage of the system, insurance essentially winds up covering those who are not insured as well.
It’s not only about the premiums going up; it’s also about having to purchase extra coverage from the start of your policy. Generally, you are able to purchase a policy that will protect you if you get involved in an incident with an uninsured driver. Of course, these policies cost more.
That’s right; this type of policy can be affected by uninsured drivers as well. Imagine that someone crashes through your fence one day, and it experiences significant damage as a result. If the driver had insurance, the policy would generally pay for these issues. However, since he or she does not, it will have to come from your homeowner’s policy, which, in turn, can cause those monthly payments to go up.
Uninsured drivers cause a lot of problems for everyone, and they force people to pay extra money.