About 10 years ago, I remember one of my friends calling me up at around 11pm and giving me some pretty disturbing news. Earlier that night, he had been at the other end of a car accident – worse, the person responsible for the accident was driving intoxicated. Thankfully, he was fine and escaped with a few minor bruises. However, I still remember the news shocking me – the accident was not an “accident” after all. It was due to neglect, irresponsibility, and ignorance by the other person who was driving drunk. Then I thought about something a little different – how would the car insurance of the person responsible get affected?
Here’s the answer. There are three ways in which your assurances auto can be negatively affected:
Let’s make one thing clear – driving drunk is an illegal activity. It’s very much against the law and not tolerated one bit. Since this is an illegal activity, your insurance will be suspended and invalid following the charge. If your insurance is invalid, then that means that you are not protected from any further accidents that might occur. This also means you’ll have to compensate the other person injured for any injuries they have faced – you will have to pay off their medical bills.
Complete vulnerability and an empty wallet are the two resulting components of an insurance suspension and a DUI charge
Threat of lawsuit
Now, the other person who has been injured in the car accident will be completely taken care of by their assurance voiture provider, giving them the funds necessary (from your bank account, of course – refer to the first point). Once the person has fully recovered, their insurance provider will come up right next to you and sue you for the damages faced by their client. So, you’ll end up having to pay the medical expenses for you and the other person and the lawsuit thrown at you by the person, emptying your wallet completely.
Insurance Renewal Problems
The last issue relates to insurance renewal. Once you get a DUI and you try to renew your insurance, you don’t need to because your driving record is wiped completely clean. When some of my friends heard this news, they were utterly delighted. I remember their exact reaction – so it’s like this DUI never happened! Wrong. Wiping your slate clean means that the insurance rates you’ll face will be incredibly high. I’m talking sky high here. You’ll end up with no money very soon because these rates will stay stable for about 10 years and then start to decline. It won’t be a very pretty situation.
So, on the whole, I think it’s sufficient to say that drinking and driving is not a smart move. Not only are you hurting peoples’ lives, but you’re also damaging the relationship you have with your insurance provider, leading you to become bankrupt very soon. On the whole, don’t drink and drive, but if you have to, make sure you hire a designated driver.
At one point in time, business was pretty simple. Go back to the first monetary equivalencies and you’ll find out that, in the past, goats can be exchanged for clothes. In other words, the entire system of finance in a country was based on commodities, not on a medium of exchange, like the dollar/euro/yen. Business, at that time, was all about trading. Trading fur, trading wool, cotton, you name it – it was an item used in a business setting.
However, things are a little different today. Make that extremely different. We’ve dropped the entire commodity system and we’re not using not only the fixed medium of exchange (the dollar) but a ton of other information. Information, in the early days, existed, but it wasn’t as abundant as it is today. Everywhere we look, some message is being communicated to us in a persuasive way. This information, in a business setting, quickly adds up. What used to be a simple financial calculation to figure out the exchange rate between two commodities is now a component of a complex formula in order to run a business. We have to not only consider our business’s financial status, but the state of the economic environment, the state of our competitors’ financial status and many other parameters that are not very easy to immediately dig up.
In recent years, innovations have risen to make this situation a little different. Firstly, we have to recognize what businesses actually want – they just don’t want to store information in a large data center– they want to USE this information to bring value to the company itself. Why is this important? Think about it…in the type of economic environment we’re operating in, it’s really important to understand what parts of your businesses are profitable and what parts are not. For this, financial management software have come up that analyze the cost and profit drivers of your business and break down your budget for you using a process called data mining. Essentially, the system takes data over data over data and interprets it – it provides VALUE to the entire process instead of just communicating what the data literally says to the user. This is really valuable to the business, since finances always come in databases and spreadsheets – there’s always a long list of things to keep in mind whenever making a managerial or an executive decision, so this system is definitely an asset to any business.
Another important advancement is the creation of enterprise risk management software, which scans the economic environment you’re operating in and lets you know of the potential (predicted) ups and down of the economy. Two years ago, we faced one of the great financial meltdowns of the 21st Century. If businesses are able to anticipate crashes in the stock markets, inventory deficiencies and other disasters, then the overall performance of the firm itself will increase. That’s definitely a good investment for any modern-day company.