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In buying a car in Indiana, many people often ask themselves because of the extra costs incurred if auto insurance in Indiana is really necessary or if it is a just a luxury. Many people think that if they drive carefully and infrequently, they can get away with not having insurance. However, car insurance is a necessity for two reasons: You cannot control how those around you drive, and more importantly, it is the law.

Even though it can be quite expensive to keep your insurance, not having insurance is almost always way more. Let’s say hypothetically, you forego paying insurance for two years and save $2,500 in the process. Because you have this money in your pocket, you might think that you have made a good decision, but it is never a good decision to go without insurance.

Let’s say that a few months later you are driving to work in the snow, and you slide in to another car. Because you slid in to the other car it is your fault. The car you hit was worth $15,000 and it is totaled. There are four people in the car and their cumulative medical bills are $85,000. You thought you were better off without insurance but now you have to pay $100,000 for an accident that would have been otherwise covered.

How does it seem now? If you had decent insurance coverage your provider would have covered all the costs, and at the worst you would have been responsible for a minimal deductable. But because you tried to save $2,000 you are now obligated to pay nearly $90,000. Is it worth the risk?

Most people don’t have access to that kind of money so they are forced to liquidate all of their assets, selling their homes, cars, and property. People often have to change their lifestyle because of this poor decision. With the risk of getting in a wreck, it is vital to have car insurance

Avoiding the costs of car insurance isn’t the only reason to have car insurance, it is also illegal. If you aren’t insured, you can be fined hundreds or even thousands of dollars. They can also revoke your license and impound your car. To be safe, it is much better to just pay for the insurance to ensure you don’t run in to any of these problems.

On top of the financial risks that you take in not purchasing car insurance, it is also against the law to drive an uninsured vehicle. If you are caught operating a vehicle without insurance stiff fines can be imposed, your driver’s license can be revoke, and your car can be impounded. Any of these penalties outweigh saving minimal money from not paying for car insurance.

Filed under: Vehicles