Because no one has to buy a new vehicle. True. But the cost of insuring the vehicle you have has been going up double digits annually – 25 percent, on average – for the past two years.

If this continues, what then?

Many people who were paying very little for a liability-only policy – which everyone who owns a car is required by law to buy as the condition of being allowed to drive – are now paying a lot more, even though they have not done anything to justify the double-digit increase in the cost of this coverage, which doesn't actually cover anything except the hypothetical cost of repairing damage to some other person's vehicle, if the "insured" is involved in an accident with some other person's vehicle.

If that vehicle is someone else's late-model $50,000 (or more) vehicle, it will cost hugely to repair it or – if the damage is bad enough – replace it. That anticipated cost is transferred onto the shoulders of the people who did not buy the $50,000 (or more) vehicle – or damage it. It is merely the hypothetical that justifies the actual – in the form of the double digit increase in the cost of this coverage.

Now, play this out a little.

Is the cost of new vehicles continuing to go up? What will happen to the cost of insurance when a new vehicle transacts for $60,000? We'll all be paying for that.

Some won't be able to – and then they won't be allowed o drive (legally).

A person who does not own a $50,000 (or more) vehicle who was paying $300 annually for a basic, liability-only policy on his low-book-value old vehicle – which he keeps because he does not want to (or cannot afford to) take on the $800 monthly payment it takes to finance a $50,000-ish vehicle over six years – is being gradually pushed into making insurance payments that he eventually will not longer be able afford to make. Because other people choose to buy $50,000-plus vehicles – and because he is forced to pay what it costs to "cover" repairs to these vehicles.