The foundational logic behind insurance is simple: if you don’t have it, someone else has to pay for stuff when things go wrong, and that’s a bad thing. Except when someone else doesn’t pay for it.
And that’s the bad news in recent studies showing that approximately 14 percent of drivers are uninsured – this, despite it being mandated by law.
The consequences of this widespread lack of car insurance play out every day across America. A driver gets into an accident with another. The driver who is at fault lacks auto insurance and is unable to pay the victim. The victim, meanwhile, has very basic coverage that only accounts for a portion of the damages.
Consequently, the victim is faced with a stark choice: pay the remaining damages out pocket, or take the uninsured driver to court – by no means an inexpensive proposition.
To avoid this, insured drivers – who may nonetheless be enticed to purchase cheap car insurance – must review the fine print of their coverage to help minimize out-of-pocket expenses in the event of an accident.