Do I need insurance?

Question

I pay 130.00 per month for my truck (2005 Dodge Ram) as per insurance. But they tell me that if I ever have an accident I will have to pay them 1,300.00 for deductables? Should I just open my own savings account and instead of paying for insurance should I just save it just incase of an accident?

Answer 1

Insurance is madatory. You cant get your truck re-registered with out it.
And there was a time you couldget insurance, get the tags on your vehicle and then drop the insurance. But now most states have a reporting data base and if your drop the insurance then the state will send you a nice letter saying they will cancel your tags.

Answer 2

Well lets take a comparison..

Lets say you have a non injury accident that bashes in your car and someone elses. Lets also assume that it is your fault so that you have to pay the bills.

1) His car.. $3,000 (pretty cheap .. maybe just a scratched fender)
2) Your car $2500 (even cheaper after all its just a Dodge)

3) His rental car while they are fixing it (lets say 1 week).. you wisely decide to walk

ok.. just for that little fender bender (and those costs are absurdly low - believe me).. you just plunked down about $6,000

at $130 a week you better start saving NOW because thats just about a year... oh.. but wait.. you said $130 a MONTH.. that means you had better not have ANY other accident for the next FOUR YEARS.

getting the picture.. ?

If not consider an injury.. you break the guys leg and he is off work for about a month.

His salary $5,000
His medical $20,000
his car $10,000

you now owe $35,000 plus interest at 7% per year. Your $130 per month won't even cover the interest !!!

ok.. got the idea now? Insurance is CHEAP compared to a single accident without it.

enough said.. keep making those payments.

.

Answer 3

No, because if you should ever get in an accident, the police want "proof of insurance" (not proof of savings account) YOU choose your deductibles on your insurance. Usually $100, $250, or $500. Check with your insurance agent (if you don't understand your policy).It's important you know exactly what you're covered for. And that's alot for deductible. I'd check a couple other companies for quotes. Unless you've got a really bad driving record, I think you're getting ripped off somewhere.

Answer 4

well, it would be a good idea, however if you dont have insurance and were to get into an accident or pulled over, you could face a lot of fines, losing your license, all kinds of good stuff....stuff savings wont be able to fix. id say start savings to save up for that deductible..or lower your deductible and just pay a little more a month.

Answer 5

$1300 deductible is ridiculous. You need to shop around with different REPUTABLE insurance companies. Make sure that you get liability to meet at least the state minimum requirements as well as Uninsured/Underinsured Motorist coverage to protect you from damages caused by a driver who is not insured or does not have enough coverage to pay for all of your damages. The Uninsured/Underinsured motorist coverage is in addition to the collision and comprehensive coverage that are required if you have a leinholder.

Answer 6

You can lower your deductible but your premium will increase. $1,300 sounds abnormally high. $500 or $1,000 are typical maximum deductibles. It would be a good idea to save up an amount equal to your deductible as you'll have to pay that amount to the repair shop if you have a claim.

You need to have liability coverage; that's the law. If your vehicle is financed, you need to have collision and comprehensive according to your finance contract.

Answer 7

Insurance is required by law

Answer 8

No, you need insurance.
What if you hit somebody, total a $30,000 car, and they need $40,000 in medical treatment?
Pay from your savings?

Besides it is the law in all 50 states.

Answer 9

By law you have to have insurance.