The practice of dealerships or private sellers offering vehicles without mandating the purchase of comprehensive and collision insurance is a segment of the automotive market. This approach allows buyers to obtain vehicles without the immediate financial burden of premiums associated with extensive insurance policies. For instance, a customer might purchase an older, less valuable vehicle and opt for liability-only coverage to minimize expenses.
This sales model can present an accessible entry point to vehicle ownership for individuals with limited financial resources. Historically, this has enabled a wider demographic to acquire transportation. It should be noted, however, that opting out of more extensive coverage transfers a significant amount of financial risk to the purchaser, particularly in cases of accidents, theft, or natural disasters.
