Everybody knows that when you buy car insurance you have the choice between a very basic level of cover – the minimum legally required to drive in your state – and various other more comprehensive options. Choosing the minimum level can often seem like the most economical thing to do, particularly if you are a little hard up for money right now and need to use your car. However, it can often turn out to cost more than it is worth, and can be seen as something of a financial gamble especially in states where minimum requirements are incredibly low.
Why Would Opting For the Minimum Actually End Up Costing Someone Money?
If you never have to make a claim on your insurance, then certainly, all it will ever cost you is your monthly premium and in this case yes, it is cheaper to get the minimum. However, if you were that sure you’d never use it, insurance by its very nature would be a waste of money! When you insure your vehicle and yourself as a driver, you aren’t just paying for something the law requires of you, but are safeguarding yourself against a lot of what could be very expensive financial situations. When you get the minimum, you aren’t covered against many of these, and so if an incident occurs, you will be liable to pay for most of the damage and any other costs yourself. In fact, it is usually the costs of damage to third party property, vehicles or health that ends up causing people who have been in car accidents financial issues, rather than having to pay for repairs or a new car for themselves. What the minimum coverage will insure you for varies dramatically state to state, but in some of the laxer ones you barely need any coverage at all and this is not necessarily a good thing!
Is This a Risk You Can Afford to Take?
Maybe if your car was written off in an accident and your insurance wasn’t good enough to get you a new one you could live without a car until you could save up for a new one, however insurance doesn’t just cover you against damage to your own property. If you write off someone else’s car and they litigate, or if they litigate for hospital bills because they incur an injury, you can find yourself in a very sticky situation if your insurance isn’t adequate to take care of what they are entitled to. Why the higher rates for more comprehensive car insurance may seem like an annoying monthly cost that you may never need to call upon, if you find yourself in a collision or other situation where you really need financial help, you’ll find it worth every penny. Even people with the cleanest driving records tend to find themselves in some sort of accident or as a victim of a car related crime at some point in their driving career, and having a good level of insurance can make situations like these far less stressful and debilitating.
Samantha Brave is a freelance blogger who writes for 4SafeDrivers.com which provides you with affordable background screenings, without redirecting you to other links. She enjoys travelling in her free time.