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Auto Insurance Coverage | Analogy To Preparedness

auto insurance coverage

Auto insurance. Most states require it. Most everyone has it.

It’s preparedness for the (hopefully unlikely) possibility that you get into a car accident. Accidents cost money. Sometimes LOTS of money.

( Preparedness is kind of like survival auto insurance )

So we pay a monthly (or annual) premium for auto insurance to insure us “just in case”.

There are many similarities analogous to preparedness we discuss here on the blog. It’s a form of security, protection.

Auto Insurance Premiums

The cost varies, often widely. There are some factors that determine the range of premiums which are out of your control. A big one is where you live.

Where You Live – Makes A Big Difference

Often we have little choice in how much it costs to insure a vehicle. Why? Because much of it depends on the region where you live. It’s logical.

The higher the population density, the more you’re going to pay for insurance. Common sense tell us that the odds of an automobile accident are higher when there are more people driving cars around you.

Right now I live out in the country, far away from any major population centers. My auto insurance is the cheapest I’ve ever paid compared to the places I used to live.

The analogy to preparedness… The more people around you, the higher your risks in general. You’re going to pay more because your risks are higher – meaning, you need more ‘coverage’.

Premiums Are Higher For Younger Drivers

Young people will pay lots more for their auto insurance than older, more experienced drivers in general. Again, it’s logical.

Inexperienced drivers are going to get into MORE accidents as a general rule. So, their auto insurance is going to cost MORE.

There’s not much that can be done about that. Experience does have its rewards. Takes time…

The analogy to preparedness… When you’re getting started, and for awhile, your acquisitions and learning skills are like driving up a steep hill. It can be challenging at first. Lots to do. But when you reach the plateau, things get easier. Less expensive. You can set your cruise control, or climb the next hill.

Auto Insurance Coverage Options

Lastly, your premium will also be determined by the coverage options you choose. There’s always a minimum set of coverage requirements determined by the state regulatory body where you live. And the minimum is what many or most people tend to choose. Who wants to pay more than necessary, right?

Well, some choose more options for more protection. It costs more. But your potential out-of-pocket expenses and personal liability is reduced when you have better coverage.

Making it simple. Auto insurance coverage is split into 3 general categories.

  1. Coverage that protects your car (of course)
  2. Medical protection for you and your passengers
  3. Coverage protecting your wallet (liability)

Collision & Comprehensive

Collision coverage covers your car for collisions (involving automobiles). Comprehensive coverage covers for things that are NOT a collision (tree falling on your car, fire, theft, etc..).

Medical & Personal Injury Protection

Regardless of whose fault, this coverage pays medical bills (within selected limits) for you and the passengers in your car.

Liability Coverage

This is extra protection for things like damaged property, bodily injury-related expenses, and uninsured motorist liability coverage.

The analogy to preparedness… Some coverage options are mandatory. You just ‘gotta’ have them. Other options are for extra protection (usually always a good idea if you can afford it!).

Auto Insurance Companies

Some auto insurance companies cost less (or more) than others. There are reasons for that. Some good, some not so good.

Again, most states regulate auto insurance companies to one extent or another. But it’s not always a guarantee that the ‘product’ is going to be good when you actually need it.

So do your research. Lots of information can be found online. Ask other people who they are using for insurance and if they’re happy with them.

Unfortunately most people won’t know for certain how good their insurance company is until it comes time to make a claim. This is why it’s important to find out what you can BEFORE an accident ever happens.

The analogy to preparedness… There are lots of companies selling product in the realm of preparedness. Look for longevity. Those who have been around for a long time. Check reviews. See which of them are advertising on sites. Ask others in the preparedness arena for their opinion. Research before you buy.

Continue reading: Best States To Live A Preparedness Lifestyle

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11 Comments

  1. When you purchase auto insurance (or any other insurance), you are basically betting against yourself. You are betting multiple thousands of dollars that you not only will have a wreck, but that you will be at fault, or that the guilty party will not, themselves, have liability insurance. That, plus you are betting that the damages will be substantially more than you paid in insurance premiums. The insurer, on the other hand, is betting you won’t have a wreck. Guess who consistently wins?

    Prepping, in contrast, requires the mindset that everybody eats, everybody drinks, everyone requires shelter, everyone needs security………..in good times or bad…….so why not build a cushion to carry you through the unexpected. Rather than someone else profiting, you get to eat, drink, and enjoy what you’ve paid for and keep that security blanket in place by only replacing what you’re using………which you would have to buy anyhow.

    What I spend every year on auto, home, and health insurance would more than cover a year’s supply of food and water for me and my family. An expenditure that would maintain that assurance by only replenishing as I use.

  2. What really gets me you are the liability when driving. So why have every vehicle carry liability insurance? I am only one person why pay insurance for both of my trucks when I can only drive one at a time… I know its a total SCAM.

    A state Mandated SCAM. They force you to purchase insurance under penalty of law. Of Course you only have a limited few options to purchase maybe 15 total providers that underwrite the insurance brokers so all pricing is near the same. Like a freaking cartel.

    They have you jump through hoops just to get a measly discount which chump change.
    Its like watching the sheeple scwable over the a $0.03 price difference in Fuel.

    Don’t even get me started on those companies that say hey plug this little GPS tracker into your dash board so we can monitor your every move. then we’ll give you a few more bucks off per month.
    What a bunch of communists.
    RANT COMPLETE…

    1. As a side note, two states do not require auto insurance. New Hampshire and Virginia. Although both states you are still held financially liable for damages under law (up to a limit). I live in NH. But I still purchase auto insurance. It’s not that expensive where I live and “if” someone uninsured hits me or if I accidentally do something stupid, I want be faced with having to buy someone a new truck. They’re not cheap!

      Anyway, yes, the insurance ‘racket’ does seem to be a bit of a cartel – in cahoots with the State(s). It’s the system we live in.

    2. White Cracker! No rant on insurance rates is complete without mentioning the Rat Lawyers and their role in this boondoggle.
      They have no honor.They have no conscience.The have no shame.
      They will screw your grandma or their grandma to make a dollar!
      By the way there is another word that goes between Rat and Lawyer.

  3. Yeah, insurance seems to be a racket.Those insurance companies all have really nice big offices.Washington State law says I must have auto insurance. We have been with an independent broker for years for all our insurance needs because they are not locked into any one company and they will shop for us on rates.Three years ago they saved us $ 450.00 annually on auto coverage .

  4. FYI…Tribal members on their reservations are not required to carry auto insurance regardless of state laws.

  5. umm…I am the Asian Driver on this website…My insurance rates? Driving like Mr Magoo?

    No comment from here…”What is that! Oh look! A chicken!” Sound effects of vehicle leaving the roadway and tires breaking traction on dry asphalt.

  6. Great analogy, I’ve used this as a counter argument quite a few times. Friends/family will ask “why do you prepare for something that may never even happen”. I carry auto insurance, home insurance, and health insurance. Never once have I woken up in the morning and thought, “today is a good day to get into a car wreck” or “I think I’ll get sick today”. Yet I carry insurance for all of these things. I’d even go a step further and say being prepared makes even more sense. (Besides the whole keeping you and your family alive thing) if we never encounter a SHTF event I can still continue to rotate and eat my food stores, and most of the items I have can and are used when camping/hiking/hunting etc. My preps are still useful if nothing ever happens, insurance premiums not so much. Great article, great analogy.

  7. Living in the ‘mile high” state we have watched our car insurance premiums go up and up. Still, will not do without it. DW had mice chew through her wiring harness last year. $3500 to replace it, covered by our comprehensive. Yeah we complain about the couple of thousand each year it cost us for our 3 vehicles, but when an elk did a kamikaze drive on DW’s car and totaled it a number of years ago, she got a new car.( and I got an elk). Anyway, yes. this is absolutely another form of prepping that I will point out to the DW’s liberal relatives over the holidays.(love to see the look on their faces when they realize that they “prep” like the “crazy people”. LOL)

  8. Well then again….
    You have your auto, house, life, health insurance.
    Why not food, water, security, med insurance?
    The latter is dependent on the person…..

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