As a licensed motorist in my state I am required to obtain and pay for car insurance on a regular basis. I suppose the payment for such services is the first of the pitfalls of car insurance. As you may have already experienced, car insurance can be quite expensive. Believe me, with the accidents my children have had, I know.
Providing your personal information to the insurance company is another. When you start getting multiple offers through the mail and on the phone, you realize your information has been sold; it’s an irritating downside of any company that practices this.
Another of the pitfalls of car insurance would be for those drivers who are never ever in any type of accident. You see, you pay, whether you use it or not. I know people who had been driving for 20, 30 or even 40 years sometimes and never had to turn in an insurance claim.
Even though the accidents of the not-so-good drivers do require payouts by the insurance providers, does it really add up to the profits that are earned from the safe drivers? I doubt that the company’s profits are affected or they wouldn’t continue to be in business.
Yet another issue with the industry is the label of \”guilty\” or \”not guilty\”. It’s sometimes impossible for the police or the insurance adjusters to determine what happened ??\” only those involved truly know. If you’re mislabeled as \”guilty\”, it could cost you for many years to come.
Insurance agents can be pests at times also. You may get calls to increase your coverage, buy other types of insurance or provide additional leads through your family and friends. Some agents are only interested in increasing their business and their paycheck, not providing you with the best service.
As I think of the pitfalls of car insurance, my next beef would be the almighty insurance card. Anytime an officer of the law pulls you over for a violation, he wants to see your registration and your insurance card. This pitfall of car insurance can be most embarrassing and frustrating. My car is not the neatest area on the planet. Needless to say, the card is in the clove box, which in my case is certainly the catch-all, junk draw, place for my stuff spot in my car. It usually takes a good 5 or 6 minutes just to find that dainty little card. By this time the officer has written an arm’s length of tickets for me.
Finally, the uninsured motorist: probably the biggest problem of all in the insurance business. It’s impossible to know who he is until he’s the one you’re in an accident with. There may be reasons why he doesn’t have insurance (maybe he simply can’t afford it with all the increased costs of goods these days), but the fact is it’s the law. Unfortunately, if you have a deductible or damages to pay for, you’ll probably be the one having to pay for them.