Why drivers shouldn’t take the risk of auto insurance alternatives.
Unlike other forms of personal insurance, auto insurance is state-mandated for all drivers. However, there are certain states that offer their drivers insurance alternatives. While these alternatives may seem like a great idea, it’s important to understand just how risky it is to rely on them. Here’s why drivers shouldn’t take the risk of auto insurance alternatives.
Auto Insurance Alternatives
- Proof of Financial Responsibility– This alternative is available to drivers in New Hampshire, Mississippi, and Arizona. While all three of these states technically have liability insurance minimums, drivers can technically satisfy this requirement by proving that they have the financial resources to cover the costs related to an at-fault collision.
- Uninsured Motor Vehicle Fee– In the state of Virginia, a car owner may have the option to register their car as an uninsured motor vehicle. This requires a fee of $500, and the designation remains for 12 months. During this time, the car owner is not required to carry auto insurance.
Why These Alternatives are Risky
If you live in the states that offer auto insurance alternatives, then taking advantage of these options may seem like a good money-saving strategy. However, when you think about the costs associated with an auto accident, insurance is usually the cheaper option. For instance, in 2014, The Insurance Information Institute reported that the average car-related bodily injury claim cost drivers $16,640, and the average property damage claim cost $3,290. It’s natural to assume that these numbers are much higher in 2019.
If you rely on auto insurance alternatives, then you would be responsible for paying the total cost of an accident out of your own pockets. As the cost of an accident is far more than annual insurance premiums, it’s safer and cheaper just to secure the car insurance coverage that you need.
This is why drivers shouldn’t take the risk of auto insurance alternatives. Do you need help securing the comprehensive car coverage that you need? If so, then contact the team at 01 Insurance in Astoria, New York. We are ready to assist you with all the insurance that you need today.