Some people choose to forgo insurance coverage due to cost. The possibility of a problem seems distant and unlikely compared to the money they have to pay for insurance coverage today.

But whatever you save in not taking out a policy today can cost a lot more later on.

To clarify why not having insurance is a risky gamble, let’s look at some ways it can cost you.

Losing your home or rental property

Almost all mortgage agreements require homeowners’ insurance. Failing to carry adequate coverage can be grounds for losing your home. The same can happen with a rental property if your lease requires renters’ insurance.

Being sued for accidents on your property

An accident on your property can cause a lawsuit. Homeowners’ and renters’ insurance policies generally offer a certain amount of liability coverage and can assist you with your legal defense and the cost of a judgment.

Suffering a major loss

The most common insurance claims are for small damages such as scratched paint on the car from your close call with a post or a broken fence from a fallen tree. But insurance also protects you from major losses—such losses can be so great that you can’t recover from them on your own.

Being unable to get insurance in the future

When you apply for an insurance policy, one of the questions you will need to answer is how long you have continuously maintained insurance. People who are proactive about being continuously insured are seen as reliable and stable, making them less of a risk. Some companies may refuse to issue you a policy if you have not been insured in the past or have long gaps in your insurance history.

Having your license taken away

Auto insurance is required by law. Driving without insurance can lead to a suspended driver’s license.

If you are concerned about being able to afford an insurance policy, know that there are many different companies that can offer you coverage. Speak with an experienced insurance broker to find one that fits your needs.