A Cab Fare Can Be A Lot Like an Insurance Premium

Picture this scenario: You’re at a party with friends drinking alcohol throughout the night. It’s getting late and time to start thinking about making it home. You drove to the party, but driving home after having a “few” drinks? Hmm….decisions decisions. You might not be wasted or anything, but what if you get behind the wheel to drive? Are you willing to take that risk?

The irrational side of your mind is telling you “This is going to be a good $40-$50 just to get home.” Then, I’m going to have to get up tomorrow morning and get a ride from someone to pick up my car.”

The logical side of your brain tells you “What’s $50 bucks compared to getting pulled over and slammed with a DUI and going through ten years of hell and torment and spending tens of thousands of dollars in penalties for making a stupid decision?”

What decision would you make? Have you made in this situation in the past?

This scenario got me thinking about how a cab fare can be a great analogy for buying insurance.

Calling the cab to get home in this sequence of events is a lot like buying insurance. With insurance, you are spending a small amount of money (an insurance premium) that you don’t necessarily want to pay, but do so to protect your livelihood. With a cab fare, you’re paying the price to make it home safely. It kind of sucks having to spend that money on an insurance premium or cab fare when you can technically use it to buy those new Nike shoes you’ve been eyeballing on Zappos.

If you choose the alternative, to play with fire and drive your own car, you are taking on a serious amount of risk. This is a lot like NOT buying insurance.Yeah, you may get lucky and make it home fine, but if you get pulled over, or hit someone, you can be screwed forever, possibly for life!  You want to save some money and avoid the hassle of paying your insurance premium, but if you suffer a loss, your business could be done for good.

Ask yourself, are you in a position where you would rather “save your money” and not buy the necessary insurance to protect your business? By paying the monthly premium, you’re protecting you and/or your business from otherwise serious risk.

Trust me on this, should you decide not to purchase insurance and suffer a loss, you’ll really be wishing you can turn back the clock and pay that monthly insurance premium to save your business.

Sadly, many learn the hard way when it comes to purchasing insurance. That monthly insurance premium is nothing in comparison to what you might be paying for a loss when you’re not insured. Think ahead and consider buying it now before it’s too late! Take that cab home instead of getting behind the wheel and putting yourself at risk.


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About Jimmy Kinmartin - Business Insurance & Risk Management

Jimmy is a California licensed Property & Casualty AND Accident & Health insurance agent working at the Olson Duncan Insurance brokerage based in Torrance and Irvine, CA. He grew up in Fullerton, CA and graduated from Servite High School in Anaheim and Loyola Marymount University in Los Angeles and currently lives in Tustin, CA. Have questions? Just ask! Or, follow Jim on Twitter at @JimKinmartin

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