The Cost of Living Without Insurance

With all the expenses that the average person to pay, it’s no wonder that insurance falls low on the priority list for many people. After all, there’s no tangible benefit from paying insurance and you could go years without filing an insurance claim. That’s if you ever file an insurance claim all. Still, when you consider the alternative of going without insurance, it will make you think twice about going without it.

Statistics show that as much as 15% of the nation’s population is living without health insurance. Health insurance can be extremely expensive for those who don’t receive the benefit through an employer. But, so are medical expenses for the uninsured. Even a routine doctor’s visit costs hundreds of dollars. More intense medical procedures can be tens, even hundreds of thousands of dollars. Without insurance, you’re legally responsible for paying those medical bills. The doctor or hospital can pursue you for payment and even sue you. It’s no wonder that medical debt is one of the leading causes of bankruptcy.

Consider the risk of going without auto insurance. If you are ever in an automobile accident and you don’t have insurance, you’ll be forced to pay for the damages to your vehicle from your own wallet. When you can’t afford to pay for the damages, then a new car or no car at all are the only other options. The consequences are worse if you’re the driver at fault. In some states, you could end up losing your driver’s license if you don’t pay for damages to the other vehicle. And if you still owe money on your car, you’re responsible for making your car note, even if your car is totaled.

If you own a home, homeowners insurance is a must. It would be close to impossible to replace a home lost to natural catastrophe or fire without having insurance to offset the cost. Not only would the home itself be lost, but all your belongings would be lost too. Without insurance you would have to completely start over. As you get older, starting over isn’t as easy as it once was. Having renters insurance is important for the same reason.

Disability insurance is offered through many employers. You may consider opting out of the insurance for the sake of having more money in your paycheck. Of course, you don’t expect to become injured to the point that you are no longer able to work, but it could happen. Disability insurance would allow you to continue receiving a portion of your paycheck for a certain number of years. Without disability insurance, you would have to go through the lengthy process of applying for government disability, which could be much less than you’d receive otherwise.

There are quite a few types of insurances to choose from and some of them you can do without, like credit card insurance which promises to make your credit card payments in a job loss. Other types of insurance, like life insurance, are far too important to forgo. If you’re worried about being unable to pay for insurance, search online for free insurance quotes from companies with a reputation of providing affordable coverage.

March 12, 2009, Posted by Rainy Day Mitch