While purchasing a car in the state of Indiana, many people see the price of insurance for their new car and consider it a Necessity rather than a Luxury. They think that if they are extra careful while driving and they stay away from busy streets as much as possible that they can go without having insurance and be ok. But it is a well-known fact that auto insurance in Indiana is vital for two reasons: even if you are a good driver, accidents do happen, and it is the law to have current and valid insurance.

Even though we often think that paying for insurance monthly or bi-annually is too expensive, the alternative is almost always more expensive. Let’s say for example that you go without paying for insurance for two years and because of that you save $2,000. You may think that you have helped yourself by not paying this money but that isn’t true.

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 would you evaluate your decision made two years ago to not pay car insurance? If you would have maintained a decent insurance policy for those two years, your insurance provider would have covered all the expenses and all you would have had to pay would have been a minimal deductable. Is paying $100,000 because you wanted to save $2,000 worth it?

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

Many people have had their lives ruined because they are forced to sell their homes and possessions in order to cover the astronomical costs for not having insurance. Because of this risk, it is a basic necessity to have current car insurance for each automobile you own. If you don’t want to purchase car insurance you shouldn’t bother buying a car.

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.