Submitted by: drank235
why do we have to pay car insurance and home insurance etc in case something goes wrong? I mean , why can’t we keep our money and then in the event of needing to fix something ,just get a bank loan?
why pay for insurance but can’t get a loan?
Previous post: Personal Article Policy
Next post: House Fire Personal Property Reimbursement
{ 1 comment… read it below or add one }
First, you don’t ‘have’ to have home insurance. That requirement is likely just a condition of getting a mortgage, so if you can find a company that will give you a mortgage without home insurance, you don’t have to get home insurance.
The reason you need insurance rather than a loan is that it’s entirely possible that you would be unable to get a loan to cover the potential loss. Have a car accident that totals someone else’s lamborghini and you need to go get a $100,000 loan at the drop of a hat. Cause personal injury to a few people and now the claim goes into the millions. Insurance will pay those claims without any problem. Most of us aren’t going to get a million dollar loan at the drop of a hat – the banks are not interested in providing insurance after the fact.