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Why Have Car Insurance When It Has So Many Problems

By: Susan Tanner I have a car and a driver's license, so as is the case in most (if not all) states, I'm required to have proof of insurance. It can be very expensive, especially when my children who are on the same policy have had several accidents. As a result, I'm realizing that cost is just one of the problems associated with car insurance.

Another problem is that of privacy. Once you give your insurer your name and personal information, they often turn around and sell it to others. You probably get telemarketers calling repeatedly and your mailbox is full of junk mail and special offers.

Another of the pitfalls of car insurance would be for those drivers who are never ever in any type of accident. You see, you pay, whether you use it or not. I know people who had been driving for 20, 30 or even 40 years sometimes and never had to turn in an insurance claim.

Even though the accidents of the not-so-good drivers do require payouts by the insurance providers, does it really add up to the profits that are earned from the safe drivers? I doubt that the company's profits are affected or they wouldn't continue to be in business.

Having a policeman or insurance company determine you were at fault is also a problem since it's not always true. Only the people involved in an accident really know what happened. If you're unfortunate enough to have the other driver lie about it, it could raise your rates and cost you in higher premiums for many years.

Maybe you've avoided accidents and premium increases but did you consider hiding from your agent? Maybe you're lucky, but some agents can be an issue. We've all heard the jokes about insurance agents. They're very eager to sell more insurance, get more customers, increase your coverage, etc. Professionals exist, but if you get one who isn't, good luck.

If you're unfortunate enough to be in an accident (or perhaps you're just pulled over for speeding or rolling through a stop sign), you're always asked for the insurance card. If you're like most of us, you're digging through the piles of paper and junk that's stuffed in your glove compartment just to find it. If you happen to have an impatient officer, the delay may result in a ticket rather than a warning. What's meant to be a good thing (the insurance card) can often become yet another problem of insurance.

Finally, the biggest of the pitfalls of car insurance has to be the uninsured motorist. This is the guy who doesn't believe in the system, although a necessary evil. He doesn't purchase it. He doesn't carry the card. The insurance guy doesn't know who he is. Of course, he is also the one who sideswipes your vehicle and tries to leave the scene. He doesn't have any money to even pay your deductible. This guy, while simply trying to save a buck or two, is certainly the one who will have the accident and cause you serious financial troubles.