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There are many things to think about when buying automobile insurance other than price alone. You need to carefully consider all the insurance coverage options, which will play a large role in the cost of your premiums.
It may sound a bit confusing, but getting the cheapest policy may, in reality, cost you serious money down the road. Why you might ask? Getting the state minimum coverage may leave you naked so to speak. In the event you get into an automobile collision, the amount of coverage you need to cover the accident might be considerably more than your policy limits.
Even worse, you could get sued and have your wages garnished. If you hurt another person in an accident you caused and could not pay for all their medical bills, you likely will.
Get the best Car Insurance for Your Needs
Let’s stick with the cheapest type of insurance plan, basic liability insurance. If you get the state minimums, you can get monthly rates as low as $30. The problem is, your car could be worth $15,000 or more. If you get into a collision, guess what, your plan would not pay for repairs to your vehicle. If it is completely totaled, that means you have just lost $15K, which is a lot of money.
Now that low-cost liability policy just cost you thousands. Simple public liability and property damage should only be used under certain circumstances. For example, if you have a vehicle that is worth less than $3,000 and you do not drive it much, maybe you can take this risk. Also, if you are a college student with an old ride not worth much, you can take the risk and stay within your budget. However, if you have an expensive car and assets to protect, you are going to need to buy added protection.
The other thing to consider with these cheaper policies is legal liability. The United States is a very litigious country. There are literally tens of thousands of injury attorneys looking for new cases. This means if you get into a vehicular incident that you were deemed to be responsible for, a limited policy can come back to bite you. Let’s say you only have protection of $50,000 in medical damages. You check your cell phone while driving, run a red light and T-bone a nice lady in a used Honda. She goes to the hospital for two weeks and racks up $250,000 in hospital expenses.
Her lawyer will immediately sue you for the balance of these costs, which in this example is $200,000. You can go to court and fight this, but it will cost you thousands to hire an attorney. The judge in this example might award the victim the $200,000 plus legal fees, which would more than likely devastate you. There might be a payment schedule of $2,000 a month taken out of your paycheck for ten years. So your money saving $39 a month policy in the long run just cost you a fortune.
The most important thing to think about when you buy auto ins is the protection of your assets. If you make more than $60,000 per year, get a policy that has up to $500,000 in accident coverage. In the event you do get into a serious collision, you will be properly covered and not get financially crushed. You might pay $130 per month and even more for a higher limit plan, but in the long run, it is the smart move to make.
You can take advantage of good driver or senior citizen discounts and save 5% or more. Another great tip is to raise your deductible up to $1,000 or higher. This way you can buy an enhanced ins plan at a lower rate. Just remember to set aside the $1k in the unfortunate event you get into a crash and need to file a quick claim.
Buy Auto Insurance Direct and Save Big
Now that you have selected the type of insurance you want, it is time to shop around for the best rates.
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Source: http://ezinearticles.com/?Cheap-Auto-Insurance-Policy-With-the-Good-Ones&id=9560732
