Why do people drive without insurance?

[Toyota 86 Driver]

Hi guys,

Why do people drive without insurance? Apart from the cost of the insurance.  Is it because they think that they are great driver and that they will never get into an accident?

Not looking for an excuse/reason/justification to not get insurance, just curious as to why.

Thanks

[KAA]

Hi Eric, probably all of the reasons you have listed, some however it is money related and they wish to take the risk, but even then why not just buy 3rd party fire and theft insurance to cover the other should you get in an accident or pay your insurance every 6 months, no real excuse just many wont dig into their hip pockets to buy insurance.

KAA

 

[campbeam]

Ignorance is a likely factor.

A few years ago when I was at a wrecking yard, there was a Toyota 86 which appeared to have damage only to the right rear quarter. To my untrained eye, it appeared to be an easy repair which would have still cost about $2000.

Also I have seen quite a number of vehicles in the wrecking yards that have appeared to be undamaged but written off as unregisterable.

The risks are just too high not to be insured. For myself, a relatively minor collision could result in my older vehicle not being an economical repair proposition.

I would say that most motorists including myself would vastly under-estimate the cost of repairs. What appears to be a $200 repair could actually be $2000 etc.

Something else that people may not consider is the damages bill to what is hit. I have heard that the repair bill for a set of traffic lights could be $100,000. This may sound like an exaggeration but.... 

[Tony Prodigy]

I suppose it comes down to cost for some people. We all would love the luxury of insuring everything but sometimes it not possible for some. Insurance has been steadily rising over the years making it extremely hard to afford, but it is a necessary evil unfortunately. It's not so much about your own car but the car you could potentially hit. You could rear end a Ferrari whilst texting and you could lose everything you own just to pay for a stupid bumper bar. Now there's food for thought lol..

I would advocate for third party cover at the bare minimum and would advise for full insurance if one can budget for it. 

House and car insurance are the two most important things and should be at the top of the tree for importance. 

19 hours ago, Toyota 86 Driver said:

Is it because they think that they are great driver and that they will never get into an accident?

I highly doubt it. I would put it down to complacency, ignorance and for the reason I mentioned above.

[bob007]

Only a fool would drive without insurance.  I've always had comprehensive cover, even on my old Corolla for 18 years because if some retard who isn't insured hit me...I loose.

What I find very strange, only Green Slips are compulsory in Australia...you don't have to insure your car...what a bloody joke. 

https://www.ratecity.com.au/car-insurance/articles/car-insurance-compulsory-australia

My Camry was fully insured (comprehensive) two days before I drove it home...it's just not worth the risk...not because I'm a fantastic driver...it's because of all the idiots on the road.

Here's why you should have car insurance and a Dash Cam. 

https://www.youtube.com/user/DashCamOwnersAustral

 

Edited February 8, 2022 by bob007

[Tony Prodigy]

10 hours ago, bob007 said:

Only a fool would drive without insurance.  I've always had comprehensive cover, even on my old Corolla for 18 years because if some retard who isn't insured hit me...I loose.

What I find very strange, only Green Slips are compulsory in Australia...you don't have to insure your car...what a bloody joke. 

https://www.ratecity.com.au/car-insurance/articles/car-insurance-compulsory-australia

My Camry was fully insured (comprehensive) two days before I drove it home...it's just not worth the risk...not because I'm a fantastic driver...it's because of all the idiots on the road.

Here's why you should have car insurance and a Dash Cam. 

https://www.youtube.com/user/DashCamOwnersAustral

 

Well said Michael. I also second the fact for a need to have a dash cam. I purchased a relatively cheap one some time ago and did use it for a while to test it out, but that aside, it was amazing how much better people drove around me when they noticed the camera.

I had a moron who cut across two lanes in a haste to get in front of me and nearly took my front bumper off in the process. When I signalled anger and disgust, then pointed to the camera, he suddenly slowed down and toned down his aggressiveness. When I passed him, he sheepishly looked at me as I told him that I was going to make him famous on YouTube. His car, his antics, his number plates all caught on camera. Now that was a Moron.

 

[Hiro]

20 hours ago, bob007 said:

Only a fool would drive without insurance.  I've always had comprehensive cover, even on my old Corolla for 18 years because if some retard who isn't insured hit me...I loose.

What I find very strange, only Green Slips are compulsory in Australia...you don't have to insure your car...what a bloody joke. 

 

I don't find the fact that only CTP/Greenslips are compulsory to be strange, there should never be a legal requirement for you to take out personal insurance on your own belongings if you don't want to.  It's a personal choice, and affects no-one else.  Third Party insurance is a different matter (CTP is part of that, but there is also Third Party Property).  I agree that anyone who drives without at least Third Party Property insurance is a bloody idiot, but for some people (and for some items) the cost of insurance over the life of the product outweighs what they believe to be a very tiny likelihood of having to ever claim on it (almost all insurance is like that).  TPP won't cover replacement of your own vehicle but at least it covers your personal liability in an accident, and if you drive a ****box then Comprehensive often isn't worth the hassle, even if the premiums are tiny the excess on any at-fault claim will be a substantial portion of the value of the car, not to mention the future effect on no-claim bonuses etc.