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The Real Cost of Driving Uninsured

If paying your monthly insurance premium feels like a hassle at times, you may be tempted to let your policy lapse. Doing so will leave you and your car uninsured on the road. While some drivers consider the cost of insurance to be too large to be beneficial, looking at the costs of repairs for uninsured vehicles can be eye opening. The following infographic gives greater insight about the real cost of driving uninsured.

fix it yourself infographic
Presented By IFA Auto Insurance

Average Cost of Vehicle Repairs
If you are found at-fault in an accident while driving an uninsured vehicle, the cost of all repairs will fall on you. Whether or not you choose to fix your own vehicle, you are legally responsible for repairing damage done to another driver’s vehicle. While the average driver pays over $1,400 each year for a car insurance policy, the savings can be enormous if that policy is needed.

Lawsuits and Legal Representation
On top of the costs of repairing damaged vehicles in a car accident, uninsured drivers may also be held responsible for the costs of legal claims. An accident victim who is injured in a car accident may press legal charges against an uninsured driver resulting in lawsuits for:

  • Medical Costs
  • Lost Income
  • Pain and Suffering

The next time you think your insurance premium is too expensive, be sure to take these factors into consideration to see the real cost of driving uninsured.

5 Car Insurance Myths That Every Driver Should Know

Most drivers think their auto insurance will cover them in an accident if they are current on their monthly premium. This is true in many cases, unless an uninsured driver hits their car – or a friend borrows the car and wrecks it. Auto insurance may not protect them from theft, either.

Without proper insurance coverage, these incidents could cost drivers a small fortune. According to estimates by the Insurance Research Council, more than 16 percent of drivers are uninsured, and state legal requirements are generally not enough to cover the entire cost of an accident. Here are five car insurance myths that every driver should know.

Myth 1: The State Requirement is All a Driver Needs
While the state requirement is all a driver legally needs, it will not cover the expenses for a serious accident. Getting by with the minimum requirement can be costly, especially for an accident that involves litigation.

Myth 2: The Driver is Responsible for an Accident
In most cases, the insurance follows the car no matter who is driving. If a driver has an accident in a borrowed car, the car’s owner must pay for the damages. If the insurance is not enough to cover the expenses, the responsibility goes to the driver involved in the accident.

Myth 3: All Insurance Policies Cover Uninsured Motorists
A basic insurance policy does not protect against uninsured motorists (UM); this coverage is an option. Moreover, drivers who have UM protection are only covered for physical injuries. Only collision insurance covers property damage caused by uninsured motorists.

Myth 4: All Insurance Policies Cover Natural Disasters and Theft
Unless a driver has comprehensive coverage, auto insurance will not pay for damages or loss due to natural disasters or theft. Most drivers do not have this optional policy, unless their car is financed by a creditor that requires it.

Myth 5: A Rental Car Requires Additional Coverage
Basic insurance policies already cover rental cars, so it is not necessary to buy additional insurance. For example, full coverage insurance on a personal car also applies to a rental if both are intended for personal use. Drivers who only carry liability insurance, however, are wise to buy additional coverage for rental cars.

Protection from loss is a crucial part of smart investing, including car insurance investments. Small monthly premiums protect assets (cars) as well as health in case of an accident. A Wilmington auto insurance representative can work with drivers to fully explain their plans and prevent overlapping coverage.