Thursday, November 7, 2013

Cheaper Car Insurance

By Jake Roseland

           Imaging being a full time student, and after school you have extra obligations, leaving no time to work because you have homework for school. Now with no time to work you have no money for paying your car insurance bill. Leaving those to pay their own insurance unable to drive and as well as to the people that just can’t afford their insurance because it is too expensive. Of course there are premiums that are cheaper than others, but for poor families that just can’t afford to pay extra money for insurance. This is why I believe car insurance should become cheaper for people that can’t afford reliable insurance.                                  

           Everyone that lives in Wisconsin knows that you have to purchase car insurance to drive a vehicle in Wisconsin. If you do not own car insurance it is illegal to drive, breaking the Automobile Insurance Law.  This law was created on Nov. 2, 2011 requiring everyone that lives in Wisconsin that drives a car to be covered by insurance. From there on it is mandatory for drivers in Wisconsin to be covered and have proof of insurance coverage (If pulled over and there is no proof and if you do not have insurance you can be fined up to $500 dollars and they can suspend your license and then there are fees that has to be paid from $50 to $110 to reinstate your license). Insurance is a must in Wisconsin and all over the Unite States.




           The insurance bill is determined by gender, age, driving record, premium, type of car, and how many people are being covered. If you have a bad driving record your insurance will be more expensive and there is a dramatic change if you have been in an accident. The average insurance price for a person over 25 years is around $150-$200 for coverage required, and for ages under 25 years old it just gets more expensive due to younger drivers  not making good decisions making overall expensive for all  16 year olds and plus that drive. The thing is if car insurance was cheaper people would be able to manage their money. For most people they have to pay other bills such as their electricity bill, water bill, rent on the house and so on.


            When someone buys a car it’s a durable good that they rely on to transport them, but there’s so many other payments you have to pay for it to be able to use the car, but it’s no good when insurance is too expensive while trying to make other payments. When people make their car payment ,and then would have to pay another payment for car insurance, causing people to have less money. This doesn't help lower income families because their insurance replaces other goods needed for everyday life.


           Car insurance is a must in today’s age and you can’t avoid if you want to drive. With high expenses it doesn't make it easier. If car insurance was cheaper it would help people that either can’t afford their car insurance or students that don’t have time to work. This is why I think car insurance should become cheaper.

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21 comments:

  1. i think it is a good thing that the state of Wisconsin requires everyone to have car insurance in order to drive a car. It will be better in the long run for the person who owns the vehicle if they did happen to get in a crash then they aren't paying everything out of pocket for the insurance will help cover some of the cost. And i understand why some insurance rates are higher especially for younger drivers despite them thinking that they are good drivers. Not everyone is a perfect driver and everyone will eventually get in a crash whether they see it coming or not. But I do think that it should be somewhat more affordable for lower income families for even they will need some sort of transport in order to get to and from their jobs. It would be great if everything was affordable for everyone, especially with something important like car insurance, but this isn't a perfect world so dealing with things like this comes with it.

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  2. The marginal benefit of having car insurance exceeds the marginal cost. It is important to have because for some families of low income without car insurance they would not be able to have transportation and go to their jobs if they so happened to be in an accident, I agree that everyone should have car insurance regardless of the cost. Insurance rates are set as a monopoly that controls the prices at each customer. They are price makers, they can set the price at different levels for different ages depending on the average outcome of accidents and reports. Yet, for a person to not have to pay straight out of their pocket for their car damages or fixes it would make for a much better and happier world.

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  3. The problem of making car insurance cheaper for those who cannot afford it is simple you are creating a reason for people to not live there. For example if you are offering to raise taxes on the rich then they are more likely to leave and move to places where they will not be punished. This will negatively effect the local economy and property values. For example if you run off a millionaire you are losing all of the money they would be spending in local shops and all that you tax off of them. To help with insurance you must either have the government regulate the profits an insurance.

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  4. What we really need is national car insurance for people under 30 years old instead of obamacare which is currently in the process of destroying our nation's economy even further beyond repair. Car insurance shouldn't be made mandatory either, that's communism...

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  5. Car insurance yes is expensive and I think that everyone would be in favor of seeing it go down. But there are many problems that can occur if making car insurance cheaper, one example would be people will start to leave or drop insurances that are making them pay more just because of someone else that is not as wealthy. Tax’s play a big part and no one enjoys taxes those would increase for people and many would complain. This could cause issues further than the government.

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  6. I think it is unfair that some are charged more than others because of gender, age, etc. It is one thing if they have been in an accident like me but for others that may never get into an accident, it is dumb. They assume that a male of 16 might get into an accident so they charge an insane amount for that. They should at least make it affordable, otherwise they take away the opportunity to drive away from many younger drivers.

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  7. Making car insurance cheaper for low income families is a good idea that would certainly be a relief for some. However, someone has to pay the difference in the discounted insurance premiums, and that would most likely be the government or wealthier individuals. Either the government would have to subsidize car insurance for low income families, which would inevitably cost them millions. The other option is those who are more well off monetarily paying the difference, which would certainly cause controversy and greater problems. It is a good thought, but there doesn't appear to be a easy way to make that possible without putting the burden on someone else.

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  9. To fix this car insurance problem the price of insurance for poorer families should be reduced, whereas wealthier families it should be more expensive so it's balanced. Many complain that people say that the higher class families should pay more for stuff (taxes for example) but they should pay more, it will help the lower class get on their feet and balance income distribution.

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  10. I agree that car insurance should be cheaper and it is too much, but I also agree that it's important. It should decrease for the lower income families and go back to "normal" as their families income increases. I like the graphic that you put in there, and I really agree with what it is saying. Us teenagers are very dangerous drivers, and our insurance should be higher that 65 year olds.

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  11. I think car insurance going down would benefit many. Not only would it help out us as teens, but struggling adults as well. Insurance should not be based on things like what color car you have or you gender. It should also not be something that people stress over so much. Overall, I think lowering the price of car insurance would help out especially since everyone in our state is required to have it.

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  12. Obviously if the insurance went down then it would beneficial to many but I still disagree. If what you pay is based off of how you drive then you should have to pay more if your record isn’t good. That only makes sense because it gives people an incentive to pay less money by being a careful driver. People of America need incentives which is like our economy. It allows people to succeed, by driving safely and paying less.

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  13. I do believe that those who of a certain age should be subject to increased car insurance because they are new drivers, however I think they also need to take into consideration the fact that someone who's a new driver is most likely not going to be able to pay for an increased price for insurance. There are multiple other policies that I agree/disagree with, but I don't think car insurance should be decreased. If someone really doesn't think they'll get into an accident, then they don't have to insure their car with collision, they just need liability. Decreases in car insurance premiums and payments will lower the desire for insurance companies to continue, lowering the quality of coverage and possibly making it more expensive in the long run.

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  14. I do agree with you that prices should be lowered, but no matter what I believe we should all be required to have it. When you are asked for insurance by a cop it's for safety really. If you got into an accident and somebody didn't have insurance when the crash was their fault would you be happy? I don't think anybody would. The fact of the matter is, car insurance would be a lot easier for people with not much money if it was much cheaper. Right now, the price of it for a teenager is crazy, especially with a new car. Now is it fair if you have worked for the new car you wanted for a long time and now you can't get it because you can't afford paying the insurance each month? I don't think so.

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  15. I do agree with US rules for car insurances and like graph showing differences of insurance due to age. But still not satisfied with the decision they made for woman driver. Does government think that a 16 years women can make better decision than a 16 years men while driving. I don't believe so. According to me, Government should re-consider this issue. Thanks.

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  16. Nice answers in replace of the question with real point of view and explaining about that.car insurance rates by zipcode

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