Is auto insurance a liability?

kayode10

VIP Contributor
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It's pretty much easier for you to move around the city if you have your car of your home. You don't need to wait for uber if you are going for an important meeting.

Before I could say anything, I would like to tell you my definition of liability. A thing will become liability when it keeps taking money out of your pocket without any replacement.

This got me thinking about auto insurance where you are paying premium either every month or on quarter basis. If you have a good maintenance culture, you can use a car for 5 years.

When this happens, you have to keep paying premium depending on your plan. You might not get anything in return from the insurance company if nothing happens to the car.

Can we say that auto insurance is a liability in this way?
 
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btaliat

VIP Contributor
It is not all instance we need to purchase. In fact, we need to make sure that the probability of having the events happening is very high. If the event is not that high in probability, then there may not be need to go into such insurance policy. Auto insurance is better done by a frequent car user than a private owner.
 
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Good luck

Valued Contributor
i don't think a car insurance is a liability because you pay your premium yearly i mean it is paid once every year and once you have any issue with your car either an accident or a theft you are entitled to get your reward from any insurance company you are partnering with.that is the benefits of an insurance company.
 
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Mandy96

Valued Contributor
To me, I really do not think auto insurance is a liability because first of all, the policy is being bought by the actual person and of course the client is definitely not out of his or her mind when he or she made the decision to purchase the plan
 
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Wisdom01

VIP Contributor
I don't think it's a liability , because the risk you are covering or protecting against could happen at anytime and if it occurs the insurance company would be present to cover the risk for you and ease you the stress of replacing the risk you are protecting against ,that's the benefit
 
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Chibson

VIP Contributor
Personally if I am not a transporter or someone who travels a lot then there is no need of me by an auto insurance because it may be useless after all. sometimes some people consider insurance as a liability and not investment because of this kind of cases. But generally it should be an investment.
 
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Wisdom01

VIP Contributor
Personally if I am not a transporter or someone who travels a lot then there is no need of me by an auto insurance because it may be useless after all. sometimes some people consider insurance as a liability and not investment because of this kind of cases. But generally it should be an investment.
I think before buying an insurance policy it's very important to check the benefit it will add and contribute to you , because most times there are some insurance policy that dosent relate to the person life style and buying such policy would serve as a pure waste to the person i think
 
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btaliat

VIP Contributor
It depends. To be honest, I don't the best thing is to make sure to insure the car that really worth being insured. There are some instances where the car won't is not advisable to insure if the car is old. But if the car is okay, it won't be a liability.
 
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