Whether you’re a driver, homeowner, or a renter on a budget, you might be looking for ways to save money. However, eliminating or cutting back on insurance coverage is often a tempting but costly choice. Many who make this mistake end up paying more without comprehensive protection; below are a few reasons as to why this is the case.

Why No Insurance Costs More Than Premiums

1. Legality

If you live in a state that requires car insurance, the fines and legal consequences of getting caught without it can exceed your premiums. For instance, if police pull you over, or if you live in a state that does random insurance checks and are unable to provide proof of insurance. The courts may also suspend your license, which could lead to lost wages if you’re unable to travel to work.  And, now the cost of insurance is even higher because you have a suspension.  

2. Liability

If you get into a car accident without insurance, you’ll be paying for the damage to your vehicle out-of-pocket. The other party may also sue for damage, injuries, and court costs, leaving you with hundreds of thousands of dollars in bills for liability coverage. The same is true for homeowners and renters insurance: If someone is hurt in your home, you could end up paying their medical bills. 

It’s not just about protecting what you own now.  Your future earning capabilities are at stake, as well. For example, you are young and just getting started.  You don’t own a home.  You don’t earn much over minimum wage.  You don’t have insurance or carry the bare minimum.  If you get sued, they’re not going to get much, right?  WRONG!  Your wages can be garnished until everything is paid.  

3. Coverage Lapses 

Letting your insurance lapse makes it harder to find affordable coverage later. Being without protection for even for a little while puts you in a high-risk category, and you could end up paying double. If you aren’t driving your car, it’s best to keep it insured. Speak with an agent about short-term or low-cost policies as an alternative.

Insurance can be reliable and affordable when you find the right policy for your home or apartment and vehicle. The agents at Mitchell Insurance Agency LLC in Texas County, MO, will find the right plan to fit your budget and needs, whether you’re looking for home, vehicle, life, or business insurance. They’ve been serving the community for over 65 years, offering quality customer service, advice, and products. Call (417) 967-2140 or submit a contact form online to get a quote.