insurance

Going Bare

Operating without insurance coverage when it's typically expected or legally required. This means assuming full financial responsibility for any losses, damages, or liabilities that would normally be covered by insurance.

Example

After his auto insurance premium doubled, Mark considered going bare but realized the financial risk was too great.

Memory Tip

Think 'bare naked' - you're completely exposed to financial risk with no protection covering you.

Why It Matters

Going bare exposes you to unlimited financial liability and potential legal consequences, especially with required coverages like auto insurance. Even a minor accident could result in costs exceeding your ability to pay, leading to wage garnishment or asset seizure.

Common Misconception

Some believe going bare saves money or that they're careful enough to avoid accidents. However, the financial devastation from a single incident typically far exceeds years of premium savings, and many states impose penalties including license suspension for uninsured driving.

In Practice

Sarah cancels her $1,200 annual auto insurance to save money. Three months later, she rear-ends another car, causing $35,000 in vehicle damage and $25,000 in medical bills. Without insurance, she's personally liable for the full $60,000, faces a lawsuit for additional damages, and must pay court costs and attorney fees. Her state also suspends her license and requires expensive SR-22 filing for three years.

Etymology

The phrase comes from the concept of being 'bare' or uncovered, similar to being naked or exposed to risk, and became common insurance terminology in the mid-20th century.

Common Misspellings

Going BearGoing BarreGoing BareGoing Baer
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Other insurance terms you should know

Actual Cash ValueThe amount of money an insurance company will pay to replaceActuaryA trained professional who uses mathematics, statistics, andActuarial TableA statistical chart that shows the probability of certain evAdditional InsuredA person or entity that receives coverage under someone elseAdditional Living ExpensesInsurance coverage that pays for the extra costs of living aAdjusterAn insurance professional who investigates, evaluates, and s

See Also

Self-InsuranceUninsured MotoristMinimum CoverageFinancial ResponsibilityRisk Retention
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