A study by the U.S Bureau of Census noted that “over a work-life, individuals who have a bachelor’s degree would earn on average $2.1 million.” It may seem a lot at first, but with deductibles, such as groceries and utility bills, the amount may not be that big.
Image source: wbur.org
And that earning may even shrink further when the $94,000car insurance bill is deducted. Data gathered by CarInsurance.com show that over a lifetime of driving—from ages 16 to 78—the average person will spend about $94,000 on insurance.
This amount may seem hefty for some consumers, but when compared with other “life expenses,” it is actually quite “reasonable.” CarInsurance.com cites the following examples:
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• An iPhone. Using a 32GB iPhone from ages 21 to 75 (including buying a new phone every six years) will cost consumers about $72,000. Consumers who are compulsive upgraders and heavy data users would pay even more.
• A caffeine habit. Sixty years of going to Starbucks every morning for its $4 latte means $88,000 worth of consumed java.
• A nicotine habit. A $5.25 pack a day for the next 60 years will cost smokers $115,000. The amount does not include the additional costs that a smoker needs to pay for life insurance and health coverage.
Many consumers think that shelling out $94,000 for a lifetime car insurance bill is too much, especially with today’s wobbly economy. Some may even risk driving without insurance. However, driving uninsured does not only carry legal penalties, but it can also lead to serious financial consequences.
Image source: cbsnews.com
Chat with a Freeway Insurance representative here for a more detailed explanation about the importance of car insurance.
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