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Insurance Education

If you have car insurance, you need life insurance. Here’s why.

February 23, 2019

If you live in the U.S. and drive a car, there’s a very good chance that you’re required by law to purchase some type of protective coverage for that car. While we may grumble about the expense, we typically just take it in stride. Sure, we may not ever need it, but…what if? Car accidents happen every day, right? Knowing that insurance may help cover the expenses if you were to be involved in one probably brings you some peace of mind.

Legislature aside, that logic seems sound. However, when we compare our approach to car insurance with our approach to other types of insurance, it seems pretty clear that the legal requirement element has a big impact. 40% of Americans opt to skip life insurance, while only 13% of drivers in the U.S. lack auto insurance. So why should you get life insurance, even though you’re not required to? The truth is, while it’s not mandatory, the benefits of life insurance may play an important role in protecting families from unexpected financial stress.


Typically required vs. frequently overlooked

Car insurance laws are handled at the state level, and while 30 states offer the option of purchasing a bond in lieu of an insurance policy, there are only two states that don’t mandate coverage for drivers. Auto insurance is designed to help cover the cost of vehicle repair/replacement, medical expenses, etc. incurred as the result of a car accident. The median amount for an auto insurance claim is around $7,000, and even though the average driver makes a claim only once every 18 years, the risk is deemed great enough to make car insurance a regulated and typically required product.

Life insurance, on the other hand, is completely voluntary…even though it’s designed to help cover funeral expenses (which can be up to $10,000 on average) and potentially help replace years’ worth of lost income to support your family if you were to pass away.


Get informed

Understandably, cost is one of the commonly cited reasons people give for not having life insurance. And we get that. Once you pay for all the things you absolutely HAVE to pay for, there may not be a lot of wiggle room in your monthly budget.

But here’s something to think about: while the average cost of car insurance is $1,426/year, the average cost of term life insurance may be as low as $200-$300/year (depending on age, gender, health status, tobacco usage, and term length). So if you’ve been putting off life insurance because you assumed the cost might be comparable to the auto insurance you’re so accustomed to paying for, we hope you’ll reconsider!


Get comfortable

Even though fatal car accidents happen every day, we don’t typically feel uncomfortable talking about car insurance. Bored, maybe, but not uncomfortable. Life insurance, though, can be a little trickier to bring up in conversation, because let’s face it…there’s only one scenario in which life insurance benefits are claimed.


That’s where we come in. At Our Life Covered℠, we want to give you simple answers to the questions that may be hard to ask, from “Why do I need life insurance when I’m young and healthy?” to “How much life insurance do I need?” (and everything in between). You’re behind the wheel as you click through the journey, but any time you need directions, our trusted advisors are here to help. To get a no-obligation quote, give us a call at 888-828-9760, or use our handy live chat feature to get in touch today!


Want to learn more about life insurance and talk more about how to work toward a longer, healthier, more financially secure life? Follow us on Facebook, Twitter, Instagram, Pinterest, and LinkedIn, or send us a message directly to join the conversation.

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Lauren Farmer


Lauren Farmer

Lauren Farmer is the Digital Marketing Manager for Our Life Covered. She leads the development and execution of the social media, blog and influencer strategies and has worked in the insurance industry for the past 12 years. In her spare time she loves to do Pilates, travel, golf, and spend time with family, friends and her very large, but sweet, pup.


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