Dangers of No Car Insurance

In these tough times, many of you may have taken double, even triple looks at the monthly budget to see where some extra savings can be trimmed out.

According to AAA, more and more of you are taking the savings out of your car insurance- something just about everyone will tell you is a bad idea.

AAA Insurance is finding that many Virginians are cutting back on auto insurance deductibles as a way to save money, but are actually setting themselves up to spend much more in the long run.

As the summer months roll in and more and more people are out on the roads, there's a warning out that many of these drivers are turning up uninsured as a way to save money, which could set those folks up for a major disaster in the event of even a minor accident.

Paul Scott said he had no idea his insurance had lapsed, meaning his little fender bender could end up costing big time. "I might be paying their deductible and now the Virginia's $500 uninsured motor vehicle fine, then I have an accident on my record which will make my premiums go up," Scott said.

And that's just for a minor accident with no injuries. Larry Fallen, with Fallen and Associates, has been selling insurance for 30 years. He says he hasn't had too many people looking to cut back on their insurance and says that's a good thing, especially when you're dealing with liability.

"If you were to get sued in a court of law, you could lose your home, your life savings," Fallen said.

Consequences Scott can't afford, even though no one was hurt and the damage minimal. "This could cost me $1,000 easy in the first year," Scott said.

AAA is putting out some ideas on how to save, without putting yourself in financial jeopardy. First, ask your carrier about discounts, which are often offered with multiple policies. Second, increase the deductible. The higher the deductible, the more you save, just make sure you can afford it in the event of trouble. Third- adjust your coverage as your car ages. And finally, shop around, every year. That will keep your carrier on their toes and keep you in touch with rates that can and will vary.