With So Many Downsides, Why Have Car Insurance?

The law requires car insurance so, as a licensed motorist, I have it and I pay for it as my policy requires. It's not cheap and I'm well aware of that since my kids have had several accidents. I guess that's one of insurance's downsides.

Another problem is that of privacy. Once you give your insurer your name and personal information, they often turn around and sell it to others. You probably get telemarketers calling repeatedly and your mailbox is full of junk mail and special offers.

If you're a very careful driver and have never filed a claim, it doesn't matter. Everyone has to pay for car insurance even if it's never used. It's just another trap with car insurance; a driver may pay for decades but never see the benefit because he has been a good driver.

Can you imagine how much profit the insurance companies made off these individuals? It's staggering. Of course, other drivers who had numerous or severe accidents eroded that profit for the insurance companies.

Having a policeman or insurance company determine you were at fault is also a problem since it's not always true. Only the people involved in an accident really know what happened. If you're unfortunate enough to have the other driver lie about it, it could raise your rates and cost you in higher premiums for many years.

One other small pitfall is dealing with the agent. They will be calling you to solicit more insurance, better coverage, other policies. Some of them will even offer money for names of your friends and family, so they can solicit them into new policies as well.

If you're unfortunate enough to be in an accident (or perhaps you're just pulled over for speeding or rolling through a stop sign), you're always asked for the insurance card. If you're like most of us, you're digging through the piles of paper and junk that's stuffed in your glove compartment just to find it. If you happen to have an impatient officer, the delay may result in a ticket rather than a warning. What's meant to be a good thing (the insurance card) can often become yet another problem of insurance.

Finally, the uninsured motorist: probably the biggest problem of all in the insurance business. It's impossible to know who he is until he's the one you're in an accident with. There may be reasons why he doesn't have insurance (maybe he simply can't afford it with all the increased costs of goods these days), but the fact is it's the law. Unfortunately, if you have a deductible or damages to pay for, you'll probably be the one having to pay for them.

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To find out exactly how I got car insurance, visit my website about auto insurance rates