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Getting Low Price Car Insurance May Not Be in Your Best Interest

Bovo Law Feb. 23, 2010

Car insurance is one of the biggest expenses of owning a vehicle. It is often confusing to understand the options when shopping for car insurance and the low price is often appealing. But it is really the wisest course of action? Maybe – but maybe not. Let’s take a look at a guide to car insurance prices.

Not Having Insurance – Or Just The Bare Minimum

Of course, cheapest is to not carry auto insurance at all, but that’s not really even an option in today’s world unless you are extremely wealthy and enjoy taking risks. Most states insist on car owners having at least the minimum, liability insurance. This is to protect the person you hit – your liability insurance will cover the car of the person you hit, but your car will be left just as damaged as when you left the accident. If your car is a junker, a cheap car that is not expensive to replace or repair, then fine. You don’t want to be paying even low price car insurance for a vehicle that isn’t worth the insurance costs every month. But if your car is worth more, just liability insurance isn’t adequate.

If Max rear-ends a Volvo, and only has liability insurance, the Volvo can be repaired through Max’s liability insurance. Max’s VW bug won’t be covered at all.

Having Collision Insurance Added

If you add collision insurance, it won’t be the lowest price car insurance, but you’ll be more covered. Collision covers your car for whatever you hit, or the accident you cause.

If Julie takes her car to Tuscon and has collision insurance on it, as well as liability, and gets into an accident by turning left right in the path of another car, both her Buick and the other person’s Toyota can be repaired.

Fully Insured

To be fully insured, though it won’t be low price car insurance, you will want to add comprehensive insurance.

Millie is driving in the woods and, out of nowhere, a deer runs across the road. Millie hits the deer – she couldn’t safely avoid it – and now has a very damaged front quarter panel. With comprehensive insurance, she’s ok. It will cover her deer damage. Without it, she’s on her own.

And The Amount Of Coverage

What type of coverage is a huge portion of the cost of auto insurance. But another aspect is what level of coverage you choose. For example, if your coverage is 25/50/15, it is very different from 100/300/100. When you are comparing low price car insurance, but sure you are comparing the actual coverage and not just the price. You will want the most insurance your budget will allow.

The foregoing article was written by the author based on experiences she has had. This article is not stated as a legal opinion or as fact but instead is stated as opinion of the author.