There’s an old saying: “It’s better to have insurance and not need it than to need it and not have it.” For many, insurance feels like a costly monthly burden, but when disaster strikes, it can mean the difference between a minor inconvenience and financial ruin. I learned this the hard way after a simple snowboarding trip turned into a costly medical experience that could have been avoided if I had been properly insured.
The Day a Skier Took Me Out
About ten years ago, I went snowboarding, ready for a great powder day on the slopes. You always hear about reckless snowboarders cutting off skiers, but in this case, a skier ran into me on a cat track, causing a hard crash. In a freak incident, I dislocated my thumb. At first, I thought it was just a minor injury—painful but manageable. But as the hours passed, it became clear that something was seriously wrong.
I headed to the ski resort’s medical clinic, expecting basic care and some advice. Instead, I walked out with a hefty bill of several hundred dollars, slapped onto my credit card, and very little in the way of actual treatment. The medics did little to address my injury beyond confirming what I already knew: my thumb was in bad shape. Who knew that a ski resort clinic would charge so much while providing so little actual help?
The Real Cost of Avoiding Proper Treatment
For a month, I tried to tough it out, thinking the pain would fade. Eventually, at the urging of a friend who knew a good sports medicine doctor, I decided to get a second opinion. The news wasn’t great—because my thumb had remained dislocated for so long, the damage had worsened. The doctor attempted to relocate it, but after failing, he recommended surgery.
I had no choice. The pain wasn’t subsiding, and everyday tasks were becoming impossible. The cost? Another $2,700. All for relocating a simple digit. And that wasn’t the end of it. After the surgery, I was told I needed several weeks of physical therapy to regain full mobility. I attended exactly one session—one hour of instruction that cost me another $100—before realizing I could do the exercises at home and save myself even more financial pain.
Now a decade later, my thumb carries an ugly scar but at least it is still attached and moves almost as well as it did before the accident. I’ve learned a lot more in those 10 years.
The Lesson: Insurance Matters
The grand total for my uninsured snowboarding mishap? Over $3,500. And that was for what most would consider a relatively minor injury. At the time, I justified not having insurance. It seemed expensive, and I was young and healthy. But that accident was a wake-up call. One moment of bad luck left me with a financial hit that could have been somewhat avoided if I had even a basic insurance policy.
The real problem, though, isn’t just one-off accidents like mine. It’s the unknown. A friend of mine was diagnosed with cancer a few years later. Without insurance, that could have led to either financial devastation or, worse, lack of treatment. Medical costs can skyrocket into the hundreds of thousands, and while you may be able to gamble with small injuries, the big ones can destroy your finances or even cost you your life.
Understanding the True Value of Insurance
It’s easy to look at the amount spent on insurance over the years and think, “I could have saved that money.” But that’s not the right way to think about it. Insurance isn’t an investment—it’s protection. (Ok some life insurance may be considered investment but we’ll cover that another time.)
Consider these scenarios:
- A serious car accident could result in massive medical bills, car repairs, and potential lawsuits.
- A sudden illness could require costly hospital stays, surgeries, and medications.
- A house fire or natural disaster could leave you homeless with nothing but the clothes on your back.
In any of these cases, insurance is the safety net that keeps you from financial ruin.
How to Choose the Right Insurance Without Overpaying
While insurance is essential, it’s also an industry where costs can creep up year after year. Here’s how to make sure you’re getting the best coverage without breaking the bank:
1. Shop Around
Never go with the first insurance policy you find or the funniest ad during the Super Bowl. Compare rates from multiple providers to see who offers the best coverage for the lowest price. Online comparison tools make this easier than ever.
2. Bundle Policies
Many insurance companies offer discounts if you bundle multiple policies together—such as auto and home. This can significantly reduce costs without sacrificing coverage.
3. Review Your Coverage Annually
Insurance rates tend to increase over time, sometimes without a clear reason. Some people in California, Florida and other disaster-prone areas have seen policies double or worse, cancel. Each year, review your policy and see if you can negotiate a better rate or switch to a more competitive provider.
4. Raise Your Deductible (If You Can Afford It)
A higher deductible generally means lower monthly premiums. If you have an emergency fund that can cover a higher deductible in case of an accident, this can save you money in the long run.
5. Look for Hidden Discounts
Many insurers offer discounts for things like maintaining a good driving record, having a home security system, or even being a member of certain professional organizations. Always ask what discounts are available to help save money.
Make sure the insurer is reputable.
Final Thoughts: The True Cost of Skipping Insurance
I never expected a snowboarding trip to cost me thousands of dollars. I certainly never imagined that a simple thumb injury would require surgery and therapy. But life is unpredictable, and when things go wrong, having insurance can make all the difference between a financial setback and a financial catastrophe.
While it’s tempting to gamble on staying healthy and accident-free, the reality is that disasters, car wrecks, medical emergencies, and illnesses happen. The cost of insurance over time is far less than the cost of a single major medical event.
Take the time to evaluate your coverage, shop for the best rates, and make sure you have the protection you need. Because in the end, the peace of mind that comes with being insured is worth every penny.
