The high cost of insurance

The high cost of insurance is NOT having insurance.

Master19 hit a parked car earlier this year. Actually, to be more precise, in the three months from when he got his licence he hit two parked cars, a building, numerous gutters and nearly took out a street sign.

The last parked car took a toll on both vehicles though, amounting to $16,000 damage. If we didn’t have insurance on the vehicle he would be bankrupt now because he didn’t have that much in the bank. Fortunately he did have the $1800 he needed to pay his excess.

You don’t have to hit a Mercedes or Ferrari to do some seriously expensive damage. A simple Holden will do just as well these days. My father always told me, “if you can’t afford to insure the car, you can’t afford the car”. It’s as true today as then.

Fortunately, you don’t have to come up with the whole annual premium in one go. Although some insurance companies charge you extra for monthly payments it does break it down into manageable amounts.

What do you think?

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