Life Without Credit or Insurance Is Hard, but Not Impossible

It is hard to imagine life as we know it without certain services and conveniences. Life without a smartphone, even for 24 hours, is more than most millennials can picture. But if a day without a smartphone is your biggest problem, you don’t have problems.

For millions of people around the country, imagination is not necessary. They are living the reality of life without either credit or insurance. We know it is possible because people are doing it. But it is definitely a sub-optimal way to experience life in the modern era.

There are excellent reasons why you want to protect your credit. Having poor credit can cost you. Forget about cash back and bonus miles. And don’t think for a moment that those lost benefits are the worst of it.

Insurance is a lot like credit. You want to get it early and protect it through the course of your life. It is better if you never have to use it. But it is the best investment you will ever make if you happen to need it. There are workarounds to not having it. But here are a few things that will be a lot more difficult without it:


If you suffer an injury that keeps you from earning an income, you will appreciate having the kind of insurance that keeps the income flowing while you recover. Insurance is also what will pay for those expensive medical appointments, treatments, procedures, and therapies that will ultimately get you back in the saddle. Rehab is expensive.

The same is true for addiction rehab. It is also covered by most insurance just like any other physical injury. When you ponder the question what is rehab like, you will realize there are a lot of mundane expenses involved, such as housing, meals, professional counseling, medication, therapeutic activities. And more.

There are options for rehab that don’t involve insurance or credit. But they are not easy and will require a commitment to recovery, use of savings, and family and community assistance in some cases.

Arranging a payment plan is usually an option. But again, it is much easier with good credit than without. Whatever your injury or illness, insurance is the best resource for rehab and recovery.


There are a number of things your auto insurance agent knows that you don’t. Most of them are about things that can raise your rates, or get your insurance canceled altogether. It is possible to have your rates raised so much, you are effectively priced out of the market.

Life without auto insurance means you can’t drive. This leaves you with options like biking, walking, taxis/ride-sharing, and/or public transportation for your daily commute. If these options are not available or safe in your city, you may have to relocate to a more pedestrian-friendly city.

To continue to drive without insurance is not only highly illegal but socially irresponsible. Auto insurance is not just about dealing with your own injuries and auto damage but dealing with those of others for whom you may have caused harm.

There are many cities where an automobile is unnecessary. But if that is not the case in the small to mid-sized town you happen to be in, then it is vital you do everything in your power to protect your auto insurance.


Even if you have a fire extinguisher, you are never quite prepared for the fire that is going to leave you and your family homeless. There is only so much the Red Cross can do in those situations. This is where homeowner’s insurance saves the day.

While the damage is being assessed, you and your family will be put up in temporary housing. And depending on coverage, you will have your home and possessions financially covered. There are few things quite so devastating as realizing you no longer have a place called home.

Even if you had perfect credit, it would only buy you temporary relief. Even with insurance, coinsurance costs can still leave you filing for bankruptcy. In cases of rehab, transportation loss, and the loss of a home you still need a long-term strategy, and the support of family and community to see it through.

Speak Your Mind