The Cost of Not Paying Car Insurance September 26, 2007
Posted by admin in : Car Insurance Articles, Tips On Car Insurance Selection , add a commentAuthor: Paul Haughney
Article:
When young adults leave university they have aspirations of
starting their first “real world” job, getting their own place
and buying a new car - one that does not need a screwdriver to
start. However, university students are also graduating with
much more than just a university degree and a dream, they are
graduating with a substantial amount of debt. In fact, many
students graduate with an average of £3,000 in credit card debt
- 10 percent of that group owing more than £7,500 in credit card
charges.
Students forget to factor in other life costs, such as health
care, income taxes, car payments, car insurance, rent, utility
bills, student loans, credit card bills and food expenses into
their monthly budget. “After you graduate and land your first
job, you do not think about having to pay for all of these
expenses,” stated a graduate from Oxford University.
“Unfortunately, reality sets in pretty fast and you realise you
do not have the money to make ends meet - it is a hard lesson to
learn!”
University Debt Why is there so much credit card debt
among university students? Many credit card companies set up
kiosks on university campuses offering free gifts to try and
entice students to sign up for a credit card. The problem is
many university students do not have the income or financial
knowledge to manage a credit card - a problem that is leading
students into a lifetime of financial despair. In addition to
the outrageous credit card bills, students are also graduating
with student loans ranging from £10,000 to £30,000 or more.
Often students figure they will be able to pay everything off
once they get a job and start making “real” money, but that
simply is not the case. Not only are credit cards and student
loan bills financially crippling to many new graduates, it is
also forcing graduates to cut back on other necessary expenses,
such as car insurance - one bill you legally cannot drive
without! “Driving without car insurance is illegal in the UK,
however, many young adults elect to go without car insurance
because they think they cannot afford to have it. While deciding
not to pay for car insurance may seem like a good idea at the
time, graduates are not considering the expense of getting
caught without car insurance or the cost of getting into an car
accident.
The Penalty of Driving Without Car Insurance According to
the Insurance Information Institute, the cost of driving without
car insurance can vary. For instance you could get off with a
small fine of a few £100 pounds or you could get a much more
sizeable fine over £1,000 plus points on your licence. In the
long run you could end up owing a lot more so it makes sense not
to take any chance ir-regardless of how much your insurance will
cost initially.
How to Budget For Car Insurance As you look for car
insurance, make sure to check if each insurer offers a 6-month
or 12-month payment plan to help manage your insurance payments
better. In addition, many car insurance providers offer a
variety of discounts, for example if you are female or if you
have had a few years no claims while driving on your parents
insurance.
Conclusion It just doesn’t make sense to hold back paying
for car insurance. Not only can it cost you financially and
leave you deeper in debt but you could also injure someone while
un-insured and think of how you would feel with that hanging
over your head. As the great Nike says ‘Just do it!’.
About the author:
Paul Haughney is a car insurance specialist who provides
target="_blank">new driver car insurance tips and best
insurance reviews.
