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Car Insurance vs. Out-of-Pocket: the Decision is Yours

Car Insurance vs. Out-of-Pocket: the Decision is Yours

You’re not invincible. Car crashes happen. Although some states do not require one to purchase car insurance in order to own and operate a vehicle, having the peace of mind that someone has your financial back in the event of an accident is worth the monthly payments.

Say you’re on your way home from work in rush hour. Your spouse calls your cell to remind you to pick up fresh basil for that new recipe that’s been posted on your kitchen bulletin board for weeks. You fumble to find your phone, and in the second that you look down into your bag, the person in front of you comes to a stop – BAM. Fender bender. Sure, it’s not that serious, but without car insurance, this momentary lapse of attention to the road can cost upwards of $600 in damages – not to mention any additional fees (sometimes over $500) that could accrue do to driving without insurance.

And this is just for a fender bender. Monetary fees increase as the amount damages to the car or drivers/passengers do.

Car insurance is a monthly expense that most people work into their budget. The average insurance premium runs a little over $1,500 a year – compare that to the $4,000 fee (and that’s being generous to the at-fault driver) that one could accrue in the event of an accident, and the decision seems to make itself.

Posted on Aug 27, 2022, in Insurance

Any information contained within the contents of this blog are opinions and suggestions of the writers and do not necessarily reflect any policies or positions of the credit union. Any reference made to products or promotions are not guaranteed at any time. This information is not intended to be considered financial advice. It is provided for your education only. Community 1st Credit Union is Federally Insured by the NCUA.