The easy solutions are not always the best. All but three US states have minimum liability insurance requirements. You commit an offense if you drive on the road without a valid policy in place. Fortunately, many of the minimum policies are quite cheap.
Unfortunately, the decision to go with the cheapest minimum policy can threaten your financial health. The minimum is to give basic protection to third parties, but you could be left with all the bills to cover your own medical treatment and all the costs to put your own vehicle back on the road. Worse, if the minimum does not cover all the liability to third parties, they can sue to recover the balance.
Of course, no-one sues if you have no property or assets. But if you own your own home, have an investment portfolio for retirement, and so on, all your savings could disappear to cover a judgment against you.
So here’s the reality check for you. If you drive an old car and you can afford to replace it rather than repair it, do not buy comprehensive or collision coverage. If you have negative housing equity and no savings, the minimum liability policy will be sufficient. |
But if the car is leased or bought with an auto loan, there will be a contract requiring you to carry comprehensive and collision coverage. Do not save money by breaking a contract.
If you have assets to protect, the best policy for you is one that has realistic protection against claims for personal injuries, loss of earnings and damage to property. There is no point in skimping a few dollars on the premium now if that means you lose your home after an accident.
So get the maximum number of auto insurance quotes and see what coverage is available at a price you can afford. Because the service on this site is free, you can run as many searches as you want to explore how much the different options costs. Only when you have all the information can you say what makes the best policy for you.
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