There are pitfalls for NOT insuring your vehicle.
by Mike Gulett –
Many people think they can save money by not paying a monthly insurance premium for their vehicle. But in reality there are many pitfalls to not insuring your vehicle. You may end up paying more on other expenses than what the premium would have cost.
Is it worth taking a chance?
This article will explore three things that could happen if you do not have vehicle insurance.
Not Insuring Your Vehicle Will Cost You Money in the Long Run
Have you ever parked your car in a crowded shopping mall? Those parking spaces aren’t always used correctly by all drivers, and dents or scratches to your car can happen easily. Also, not all drivers are conscientious and ethical enough to wait for you to come out after your shopping and admit liability.
The chances are good that you’ll find your vehicle damaged with no one there to take responsibility for the damage.
Not having car insurance will result in you having to pay for those damages. The worst case scenario would be if you’re ever involved in a car accident and your car is written off. That is the kind of costs that can set you back financially. Are you prepared to take such a risk?
Not Insuring Your Vehicle Will Result in Liability Costs
You’re not only protecting your own vehicle when you take out car insurance. You’re also protecting yourself against any liability towards the other driver. The accident might not be your fault but you’ll still be liable for the costs if you can’t prove your innocence. If you’re ever in a car accident, you should speak to an experienced car accident lawyer — you can click here for an example.
Remember, insurance companies take the responsibility of working on your behalf so that you don’t have to get caught up in a legal fight. Not insuring your vehicle leaves you open to a lot of frustration and financial losses. Many states in the USA require a minimum of insurance and you can be open to fines and possible losing your license without this insurance in addition to any damages you may owe from an accident.
Not Insuring Your Vehicle Hurts Your Resale Value
People often joke about car lovers repairing every scratch and dent on their vehicles the moment it occurs. Why don’t they simply leave it? Because small dents and damage to your vehicle decrease the resale value.
Having insurance makes it easy for you to claim minor or major damages and will protect your investment. It’s simply not worth paying the repair costs out of your own pocket because the cost of replacement parts can be very high especially for some collector cars.
Collector Car Insurance
Regular car insurance companies likely will not insure your collectable cars because they do not know how to set a value because the car is not in any of their books. The collector car insurance companies will insure the car for an “agreed value”. You propose the value and the insurance company must agree to that value. The higher the value the higher the premium but this correct value will be important in case of a total loss.
This Ferrari 360 Modena needs a little help
Shop around for collector car insurance there are several companies to consider: Hagerty, Grundy, J.C. Taylor and Heacock Classic.
With one of the classic car companies mentioned above I added a third collector car to my policy and they sent me a check for $90! Yes, it was cheaper to insure three cars than two. I don’t know if this will always be the case but I called them to be sure they had not made a mistake.
It is advisable to be honest with you car insurance company because if you are not and have to file a claim this could create a situation where the claim could be denied.
Conclusion
Having insurance for your vehicle is not optional. It’s an absolute necessity if you want to protect your investment. Without your vehicle how else will you get to the places you need to, like work or the local concours d’elegance?
Make sure you protect your vehicle with insurance. It’s a small price to pay to ensure the protection of something as important as your vehicle.
Mike Hailwood’s Crashed Iso Grifo – photo by Andre Loubser
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