Do you need to carry state law minimum car insurance?
Make sure your cheap car insurance will cover you if you're in an accident. If you are like many, you need to rely on minimum liability coverage to meet the legal requirement to possess car insurance on any licensed and operated motor vehicle in which you are the primary driver.
For some people, this type of coverage is the only way they can afford to drive. Whether it is due to age, poor driving history, or no driving history, premiums with traditional insurance companies may be higher than is affordable. While cheap insurance can save you money[1] now, it's important to be aware how much you'll be spending in the event of an accident.
Check to see if your cheap car insurance policy will cover…
Uninsured Motorists
If your vehicle is collided into by another and the driver has failed to meet his/her obligation to insure the vehicle on the road, you may be stuck without any help. Despite the laws surrounding car insurance that are strictly enforced, thousands of people nationwide are driving without it. Even though they may face consequences for having been driving without insurance, their motor vehicle rap sheet won't get your car fixed. Check to see if your insurance policy covers uninsured motorists. If it does not, find out how much it will be. If it is anywhere in your budget, it's practically a must. Although you may be paying less now, what will happen if you lose your transportation? Vandalism
We are living in an increasingly violent world where nonsensical vandalism takes place on a daily basis. If you wake up one morning and your car has been completely destroyed, will you have any help picking up the cost? Does your current insurance company even offer this as an option? Find out. It's not as likely as being hit by another driver, but if you don't park in a private garage, it's always a possibility.
Hit and Run Driver
Does your policy cover you if your car has been beat up by a hit and run driver? Do you park on the street where this is most likely to occur or are you safe in a drive way or garage. If your car is vulnerable to being hit by a hit and run driver, see if your cheap car insurance has any coverage for you in this scenario.
All or none of these options may be available to you. Whether or not you are able to afford to update your insurance, at least be familiar with the details of your car insurance policy and find out what is covered, what is not, and what your co-pay will be.
References
- ^ save you money (fxdailyreport.com)
