Is The Minimum Legal Coverage Enough For Auto Insurance?
Posted on: 4 June 2018
When you are looking for ways to cut your expenses, you might consider reducing your car insurance policy to the minimum coverage your state requires. While this is legally possible, cutting your policy to the minimum coverage might not be a good idea. The minimum coverage required by law is not typically sufficient for situations when accidents occur, and here are several things you should know about this.
Why states require coverage
The first thing you should understand is the reason that states require coverage in the first place. States do this to protect people who are involved in accidents. If you were involved in an accident caused by a person without insurance, you would have a major problem on your hands. To prevent this from happening, states have requirements for insurance. While there are still people that drive without insurance, those individuals can end up in a lot of trouble when they are caught.
Why the minimum coverage might not be enough
The minimum amount of coverage your state requires might be a good place to start with coverage, but it is never really going to be enough if you want to fully protect yourself. If you were involved in a major accident that you caused, your minimum policy would not offer enough coverage for the injured party. If this occurred, that party could come after you to pay for the remainder of what your insurance policy would not cover. This could put you in a really bad position, but you could avoid this if you choose to get more coverage than just the bare minimums.
How you can save money without cutting your coverage
If saving money is the only thing you are worried about, you might be better off talking to your insurance agent about other ways to save money on your policy. Your agent might be able to help you find discounts that you are eligible for, and he or she might be able to help you save money simply by raising your deductible to a higher amount than what it is currently at right now. You can also reach out and get some more insurance quotes from other insurance companies to make sure you are getting the best deal.
If you are looking for ways to save money on auto insurance, you might want to begin by shopping around for your coverage. You could also ask insurance companies for discounts, because these can also help you save money.
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