Auto insurance helps you stay covered while you navigate the road conditions. Finding a policy that aligns with your finances can be complicated at times. You have to assess several different factors regarding the type of auto insurance coverage that you need.
While full coverage, including comprehensive and collision, is an option, perhaps you decide that having minimum coverage is the right move for you at the moment. Many drivers may choose to rely on minimum coverage to save money. Here’s a look at some important questions to consider.
- Legally Obligated Coverage
The amount of auto insurance you are legally mandated to have varies from state to state. In most states, you will have to acquire some combination of bodily injury, property damage, personal injury protection, and uninsured/underinsured motorist coverage. The cost of the policy may vary depending on the state you are living in. Contact your insurer to ensure that the policy you’re interested in adheres to your state’s requirements. Generally, you should be able to save money by purchasing minimum coverage compared to collision or comprehensive coverage.
- Possible Risks
Insurance is designed to cover you in the event of an emergency. Simply relying on minimum coverage will not protect you in every scenario. If someone breaks into your car or your vehicle collide with a deer, you will not be covered in those scenarios if you only have minimum coverage. However, purchasing comprehensive and collision coverage can protect you financially in such situations. Minimum coverage is not the ideal option if you drive regularly or have a new vehicle.
- Coverage Options
If you decide that you need more than just the minimum coverage, shop around and compare quotes. Collision coverage protects your vehicle if it’s damaged due to an impact with another driver. Minimum coverage doesn’t protect you in this situation because you did not cause the damages. Minimum liability coverage protects you if your vehicle hurts someone or damages their property. The minimum liability coverage prevents you from being sued.
Comprehensive coverage covers you if your car is accidentally set on fire or an object hits your vehicle and cracks the windshield or causes a dent. These are unique situations that you can’t prepare for. Minimum coverage doesn’t protect you in unpredictable situations. Perhaps your car runs out of gas or has trouble starting. If your vehicle requires urgent towing service or roadside assistance, minimum coverage doesn’t protect you, which may make things uncomfortable.
If you have a tight budget, purchasing the minimum amount of coverage may be your only option to drive your vehicle on the road and avoid penalties legally. As your situation improves, you should seek to add more coverage in the future to stay covered against every possible risk. If you have any questions about your auto insurance, our insurance experts at Weaver & Associates will assist you.