Forgoing insurance on autos is risky The Free Lance-Star
BY KELLY HANNON
A decade ago, John Townsend decided to save money on auto insurance by switching his coverage on an older, rarely driven SUV to collision only.
Shortly afterward, the car was stolen.
"It was a total loss," Townsend said.
Collision insurance pays only for crash-related incidents, not theft. Comprehensive coverage would have paid for Townsend's car, since it covers a greater number of calamities: flooding, fires, falling or flying objects, even riots.
Townsend, a AAA Mid-Atlantic manager of public and government affairs in Washington, offered his experience as a cautionary tale for drivers. AAA, which sells car insurance, unsurprisingly thinks people should hang onto policies even when budgets are lean.
Uninsured--or underinsured--drivers could find themselves in severe financial straits if they are in a crash. Depending on the severity of the incident, and the willingness of the other party to pursue legal action, not paying for a policy could be a costly decision, Townsend said.
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