Why Pay for Auto Insurance?

We know that having auto insurance is the law and we can get in trouble for not having auto insurance, but why pay for it? Why pay for something that you may never use? Just what is it that auto insurance companies are doing when you are giving them a portion of your paycheck every time the bill comes? To put it short, insurance companies are managing your risk for you. To put it long, just keep reading and find out why you pay for auto insurance!

It may seem silly and not make much sense on the surface, but in essence you are paying your auto insurance company to assume the risk involved with you driving when you pay your premiums. What type of risk is involved when you drive your vehicle to work every day? What type of risk is involved when your son or daughter gets in the vehicle to go to school? What types of risks are we talking about? Financial risks, did that put it simply enough for you?

Think about your vehicle if you were to have a major crash today that was your fault, how much money would you be losing? What if you caused severe damage to the other vehicle involved in the accident, how much money have you lost now? While you may have been paying your auto insurance premium for several months or years without an accident, suddenly it all becomes worth it and that “suddenly” is what it is all about. Having to pay a $500 deductible and have your vehicle and the other person’s vehicle repaired makes it all worth it, right?

That is why we pay for auto insurance, because it helps manage the risk involved with driving a motor vehicle on a road full of crazy and inattentive drivers. It helps manage the risk involved in having a moment of absent mindedness in a day full of quick and important decisions. Most of all, auto insurance helps manage the risk involved with having a comfortable everyday existence.