Atinitonews.com : Philippine News Feature - Driving without car insurance could be costly

Driving without car insurance could be costly
by Adam Aspilla

With global financial crisis, thousands lost their jobs and rely only on Employment Insurance income. As a result, many could not afford to pay their basic expenses. If you drive and own a car, you may opt not to pay your car insurance premium and let your car insurance expires and use your money instead to pay your basic needs. However, driving without car insurance could be costly.

You maybe driving your car for a while without car insurance and you are just fine and no problem at all. Nevertheless, an accident is never planned otherwise, it is not an accident. Accident just happens, if it happens you will be in big trouble.

First, if an accident is serious where it caused physical injuries and it is your fault, you will be sued for damages to the other vehicle, for the lost of income, pain and suffering of the driver and passengers. And if you have passengers other than your family members you could be also sued of the same (lost of income, pain and suffering).

Damages could cost a million dollar or even more.

Secondly, your driver’s license could be revoked for life, as there are pertinent traffic laws regulating drivers who drive without car insurance.

A good example was a man at his middle thirties who drove his car without car insurance. After driving his friends to their respective homes after attending a birthday party, while he was on his way home he hit a luxury car. It was his fault and it was a serious accident as the driver of the other vehicle was seriously injured. When the police came he could not show his car insurance for there was none.

He was sued personally by the insurer of the other vehicle for more than $200,000.00 for damages. He could not afford to pay the judgment amount. As a consequence, his house was attached and ultimately he lost it.

Not only that, his driver’s license was revoked for life.

The moral lesson of the above case scenario is if you do not have car insurance do not drive your car. It would be much better for you to just take a bus or ask a friend to give you a ride rather than exposing yourself of being caught driving without car insurance, because it would be costly, not to mention the possibility of losing your driver’s license for life.
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Adam Aspilla is a Senior Financial Counselor of the Debt Clinic of Canada Inc. and the author of the book, You Can Negotiate All Your Debts. He also writes a monthly column, “What Matters In Life” in “Taliba” Newspaper. For free initial, professional and confidential consultation, please call 905-306-7572 or visit www.debtcliniccanada.com )