Is Car Insurance Worth It For Good Drivers?

Having never been involved in an accident, I sometimes wonder if I should just cancel my car insurance (especially after receiving a renewal notice). I have been driving for over 15 years and have never been involved in an accident nor have I been pulled over by a cop and asked for proof of insurance. It almost feels like I’m giving out money and receiving nothing in return.

This feeling was only amplified when I bought home insurance and looked over the policy documents. While it is reassuring to know that things like my wife’s wedding ring and the hard wood flooring is protected from water damage, our deductible is $1,000! What this tells me is that the insurance company is only there to protect you against big losses such as a fire or a huge accident. This is evident by the fact that my insurance company waives the deductible if the loss is over $10,000. But back to my car insurance question.

What is my car insurer protecting me against? Most repairs to my vehicle are under my deductible so there really isn’t a point of going though insurance (unless I want to ruin my driving record). Again it seems like the insurance company is only interested in insuring me from big losses. For instance, they make such a big deal about giving me $1 million liability coverage but I do not know anyone who has been successfully sued as a result of damage they caused in a car accident. Think about you have to seriously hurt someone in an accident, have them take you to court, have them win, in order for the insurance company to pay out.

I know, I know, if auto insurance really isn’t worth it? Why do I have it? Well where I live you need to show proof of insurance in order to register your vehicle every year and I guess it just feels good to know I’m protected -even though the protection is rooted in speculative fantasy.

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