Everyone knows what insurance is. Pay some money and get that money back when you get into trouble. It’s handy when your house burns down, a family member dies, or you contract a severe illness and need treatment, plus a wad of cash for your troubles. However, is it worth it with the current price hikes and the minuscule chance that something bad will happen to you? Consider vehicles, where according to the Department of Motor Vehicles, “You must carry evidence of insurance in your vehicle at all times”, and “Car insurance rates in California increased by nearly 50% in 2024” (Desert Sun). Despite the number of students and people who either can’t afford such prices or refuse to pay the price hikes, driving around uninsured, car insurance still stands as a legal and financial responsibility.
In California, driving uninsured is wholly illegal. Plenty of penalties come with driving uninsured, according to Mark Fitzpatrick from ValuePenguin, “pay a fine between $100 and $200 plus penalty assessment fees…Mandatory one-year suspension…maintain an SR-22 and proof of financial responsibility for three years…Up to a four-year suspension…provide an SR-22 and maintain it”. These include fees ranging from 100 to 500 dollars, not including the application and stigma (causing hesitancy and higher rates from insurance companies) of having an SR-22. You can expect a lot more devastating financial loss than if you just coughed up the cash for some insurance. In some severe cases, according to Legal Not Legal, jail time is even awarded to uninsured drivers, especially if injury is involved. The risks are worth purchasing some insurance, which the bare minimum annually rarely exceeds a thousand dollars.
If financial stability is a concern, it is important to note that, accidents, SR-22, and potential lawsuits may cost you even more in the long run. Driving uninsured and causing an accident puts you and your bank account at risk. According to Kayda Norman and Ben Moore, insurance costs range from $615 for minimum coverage and up to $2000 for full coverage. Compare that to a typical accident, where the bare minimum costs out of pocket could be at LEAST 57 hundred dollars, in the case of property damage. And that is if the opposing party doesn’t sue. If they sue, you must find a lawyer, go to court, and potentially get more money seized. These costs are much higher than simply paying a little bit of insurance.
Insurance isn’t called insurance for no reason. You pay money to ensure you don’t have to pay more money or time in case of accidents. Every driver must spend at least a little bit of money to get insured, because the consequences will cost much more than the price that’s got you or your parents hesitant.
