Understanding Why Some People Choose to Go Without Insurance
You probably know you need insurance in life. You can get several different kinds, and the more coverage you have, the better. However, in this article, we’ll discuss why some people choose to go without insurance. Some of them feel like they have good reasons, and that’s worth discussing.
We’ll also run through a few different kinds of insurance and explain why some choose to get it or not.
Business Insurance
We’ll start by talking about business insurance. You might also hear individuals in the insurance industry call this commercial insurance. Business insurance does several things. It protects companies from property damage. It provides workers with coverage for medical expenses if they sustain an injury while they’re on the job.
It also protects businesses if a client or customer decides to sue them. If that happens, it rarely goes to the trial phase. Only about 4% of injury cases go to trial.
Usually, the insurance company that provides that particular business with a policy will offer a settlement. That way, the company can get back to work without having to incur any further negative publicity from the civil action against it.
Why Might a Business Owner Choose Not to Have Insurance?
If you have a business owner who decides they’ll let their business insurance lapse, or if they don’t get a policy at all, that basically means they’re gambling.
They’re banking on no one suing them, and none of their employees getting sick or hurt while on the job. They’re hoping that there’s no damage to their property, inventory, tools, or equipment that their insurance policy would otherwise cover.
It seems illogical to risk the hassles that you might run into if you own or operate a business and you don’t have insurance.
Maybe you have a business that’s barely hanging on. It’s already in the red, and it’s in danger of going under. In that sort of circumstance, maybe you have an owner who decides to go without insurance for a while. That’s ill-advised, but it does happen sometimes.
Health Insurance
Then, there’s health insurance. If you have health insurance as a child, probably you’re getting it through a parent’s job. If they have a position with a company that comes with health insurance, it should cover them, but also dependents like children or a spouse.
As an adult, you’re probably either getting health insurance through your work or else you’re purchasing it via the marketplace through the Affordable Care Act. In either case, if you ever need surgery, your health insurance should cover that.
If you need medication, you can get it for free or much less money through your insurance. Your health insurance can also help you with medical necessities like a walker or a wheelchair if you’re dealing with a disability.
Why Might Someone Go Without Health Insurance?
This begs the question of why someone might go without health insurance since it seems so vital. Much like the business owner who feels like they can’t afford an insurance policy, someone who doesn’t get health insurance might think along those same lines.
If you’re unemployed, then you can’t get insurance through your job. If you’re not working, though, then you probably don’t have the money to buy insurance through the marketplace, either.
Since we have privatized healthcare in America, you can’t access socialized medicine in the same way you can in many other developed countries. That means some individuals with no work and little money might go without health insurance because they feel they have no other option. They at least have the opportunity to go to a free clinic if they need urgent medical attention.
Homeowner’s Insurance
There’s also homeowner’s insurance. Homeowner’s insurance comes in handy for individuals who buy their own detached home and live there. This kind of policy covers damage to your property if there’s a fire, flood damage, etc. If someone hurts themselves on your property, your policy should also pay their medical bills in most instances.
Why Might Someone Go Without Homeowner’s Insurance?
Again, the cost usually comes into play when someone chooses to go without insurance. That’s certainly the case in many instances when someone elects not to get homeowner’s insurance.
A homeowner must pay property taxes. If they don’t own the property outright, they must pay a monthly mortgage amount to the bank. They might feel like they can’t afford the additional cost of homeowner’s insurance, especially if they’re either out of work or not getting as many hours at their job as they’d like.
Even though you should have insurance to protect you as a homeowner if someone harms themselves on your property, you might decide to chance it and go without. That can backfire if someone hurts themselves in your house and sues, but in the meantime, you should enjoy not having another bill to pay.
Car Insurance
You also probably know you need car insurance if you’re a licensed driver and own a vehicle you use to get around. Your car insurance can pay for the damage if you’re in an auto accident.
Why Might a Driver Go Without Car Insurance?
If a driver goes without insurance, they’re probably thinking about the cost, the same as with all of the other kinds we’ve mentioned on this list. You might have someone who doesn’t have much money to spare. Maybe it’s all they can do to pay for rent and groceries, so they figure they’ll risk driving without car insurance.
They might face significant consequences for that if they hit a car and the police find out they don’t have insurance. In the meantime, though, they’ll probably roll the dice and just hope they don’t cause any collisions.
