How much car insurance do you really need?

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There are a lot of costs associated with using a car, with fuel and maintenance expenses potentially taking a noticeable drop in your budget on a regular basis.

Insurance is one of those essentials, but since it’s usually only bought once a year, you might forget about it until the last minute.

If your renewal date is approaching and you’re not sure which type of coverage, plan or provider is right for you, read on for an overview of options and caveats to consider.

Getting the right coverage doesn’t have to be expensive

The temptation to opt for the most basic auto insurance package to save a few bucks is strong, but a low price doesn’t mean you’ll get what you pay for.

Indeed, at a time when you can find cheap car insurance thanks to comparison sites like Cheap insurancethere is no longer any need to compromise.

By seeking quotes from a cavalcade of insurance companies, you will be able to match your budget with a policy that offers sufficient protection against the worst-case scenarios involving your vehicle.

Understanding Responsibility

Most states have a minimum insurance requirement for drivers, and this usually means that if you are involved in an accident, you will have enough cover to account for the costs of other parties involved.

Even if you consider yourself a safe driver, there is no way you can control the behavior of everyone else on the road. This means that the minimum insurance will not protect you if someone else is responsible for an accident in which you are involved and they have no insurance.

So while you don’t theoretically “need” anything more than just low-level liability coverage as part of your auto insurance, it won’t serve you if the situation is more complex.

Instead, you should pick a plan that’s at the upper end of your budget and get as much coverage as possible. Being protected against things like vehicle theft, vandalism, collisions with uninsured drivers, fires and everything else can come at a price, but it will always be cheaper than the alternative.

Appreciate the value of your vehicle

Another reason to embrace car insurance, rather than just viewing it as a financial burden, is that it’s helpful in preserving access to your car.

A car is worth more than the list price, especially if you need it for your daily commute, to run errands, or to visit friends and family.

Unless you have a lot of spare cash, an auto accident can leave you without a car indefinitely. Insurance steps in to solve this problem, helping you get back behind the wheel and maintain your normal routine accordingly.

So, ask yourself if you can afford to live without car insurance, because of the disruption that a disabled vehicle will cause? The answer is almost certainly “no”.

Choose a quality insurer

The final point to consider when choosing a car insurance package is which insurer you should go with.

We’ve already discussed the impact of comparison tools on expanding your options, but it’s also beneficial to do your own research to verify that potential vendors are worthy of your custom.

This is where paying more for a plan from a reputable and respected insurer, rather than choosing one at the bottom of the barrel, will once again work in your favor.

You want an insurer who will be there for you when disaster strikes, offering support and advice, not an insurer who will sit idly by when you need it most.

I hope you now feel a little more confident about finding the right car insurance and are ready to see this as an essential investment in your financial stability, rather than a necessary frustration of owning a car in the modern age. .


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Justin D. O'Neill