You should consider more than just the price when purchasing automobile insurance. It is important to consider all insurance coverage options. This will impact the price of your premiums.
Although it may sound confusing, getting the lowest policy could end up costing you serious money. You might be wondering why? You might be left without coverage if you don’t have the minimum state coverage. You may need more coverage if you are involved in an auto accident.
You could also be sued and your wages garnished. You could be sued if you cause an accident that hurt someone else and you are unable to pay all their medical bills.
Find the best car insurance for your needs
Let’s keep it simple with basic liability insurance, which is the most affordable type of insurance. Monthly rates starting at $30 if you have the state minimums. Your car may be worth more than $15,000, but that is not the problem. Your plan will not cover repairs to your car if you are in a collision. You just lost $15K if your vehicle is totaled.
This low-cost policy on liability will only cost you thousands. Only certain situations warrant simple public liability or property damage. If your vehicle is less than $3,000 in value and you don’t drive it often, you might be able to take the risk. You can also take on the risk if your vehicle is an older one that is not very valuable and you have a budget. You will need additional protection if your car is expensive and you have assets to protect.
Legal liability is another consideration when you consider these policies that are cheaper. The United States is very litigious. Tens of thousands are available to help you with your injury case. If you are involved in a vehicle accident that you were not responsible for, your policy may come back to bite. Consider that you have only $50,000 of medical damage coverage. You use your phone to check your car while driving and then you T-bone a lady riding in a used Honda. She spends $250,000 on hospital bills and goes to the hospital for two more weeks.
Your lawyer will immediately sue for the remainder of these costs. In this case, $200,000. Although you can fight the case in court, it will be expensive to hire an attorney. In this case, the judge might award $200,000 to the victim and additional legal fees. This would be devastating for you. You might receive $2,000 per month in a payment plan that will be taken from your paycheck for ten year. Your $39 per month savings policy will end up costing you a lot.
When you are buying auto insurance, the most important thing is to protect your assets. A policy with $500,000 of accident coverage is recommended for those who earn more than $60,000 a year. If you are involved in a serious accident, you will be adequately covered and not lose your financial stability. Although you might have to pay $130 per monthly for a higher limit, it is a smart decision.
Take advantage of senior citizen or good driver discounts to save as much as 5%. A great tip is to increase your deductible to $1,000 or more. You can then purchase an enhanced insurance plan at a lower price. Keep the $1k aside in case you are involved in a car accident and have to file a claim.
