Reasons Drivers Don’t Buy Car Insurance Policies
Having car insurance is the law in all fifty states, and it’s something every driver needs to have. If it’s the smart and legally required thing to do, how come more than ten percent of the population in the US drives around every day without owning a car insurance policy? Below you can read on for some of the ill-informed, though logical, reasons behind the decision to not be insured, or to choose the first insurance you see, not knowing if you’re under or over insured.
Reason 1: “Car Insurance is Expensive”
There appears to be a direct correlation between the strength of the economy and the number of uninsured drivers. When the economy was booming in the mid-2000s, the number of uninsured motorists dropped. When the economy is good, people aren’t on such tight budgets. However, since the downturn that started in 2008, there has been a decline in the amount of uninsured drivers.
People are risking the sanctions of driving without insurance coverage to save money. There’s a lot of money to be saved by not paying car insurance, as the average cost is around $900 a year. If you attach that cost that to other living expenses, the bills can add up, and tangible things like mortgages, rent, food, and utilities tend to take priority.
However, not including car insurance in your budget can be dangerous, as it can also leave you over or underinsured. Accidents are more common than most people think – do you really want to risk it?
Reason 2: “Car Insurance shopping is Time Consuming”
The results of a survey done by NerdWallet, almost ninety percent of drivers feel that car insurance shopping is a frustrating and time-consuming experience. It can be uncomfortable giving out private information to an insurance agent or online, and the car insurance websites can be overly complicated when comparing quotes. This complication pushes the consumer to choose their policy quickly and without much thought, just so the process can be over. This means that a lot of drivers are overpaying for car insurance, as they are not aware of saving opportunities.
Reason 3: Car Insurance Providers are not Trustworthy
Consumers may not trust car insurance providers due to a bad customer service experience in the past or feel that their flashy adverts create confusion. A driver doesn’t need to be entertained by car insurance; they just want to feel their assets and finances are being secured and protected. There needs to be good communication between the client and the agent so that the customer feels their needs are being met and understood. And while there are services out there that don’t quite offer bang for your buck, there are plenty of providers that offer a solid service that protects the consumer.
Car Insurance has a lot of Complicated Jargon
A lot of consumers are not confident or trusting of products they can’t understand. Insurance policies (no matter if they are auto, homeowner or life insurance) have their set of complex terms and conditions. If there is little to no contact between the agent and the customer, the latter may feel as they are not being benefited or helped from the car insurance agent, and may not feel the need in maintaining their insurance policy. Ultimately, why would a customer spend a monthly part of their budget on something they don’t feel they’re using?
You might not be aware that you’re underinsured until it’s too late and you’re facing increasing debt coming from mechanical and medical payments. It’s vital that you locate an insurance company that meets of your needs before you need to use the insurance.