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Why are Minimum Car Insurance Coverages a Bad Idea?  

  • Cars Explained
  • Renee Martin
  • 5 minutes

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Walking into the car showroom to purchase your dream car is a moment that cannot be described in words. You’ve waited so long for this moment, and it’s finally here. By law, drivers must have a valid minimum liability car insurance coverage to drive on public roads. Adding any more insurance policies would stack more and more bucks into the expensive business of car purchases. Be always on the safer side. Opt for full auto insurance coverage

You have already spent a lot of money on your car, and the last thing you want now is to further waste money on cheap car insurance policies. If you think the same, you need to read more of this because we clearly explain why choosing the minimum car insurance coverage is a terrible idea!  

Is it Legal to Drive with Minimum Coverage?  

Yes. Legally, you are only required to have an active minimum liability insurance coverageHowever, having just the minimum car insurance coverage could result in you eventually spending more money on medical payments and car repairs after an accident. Liability coverages are meant to offer financial assistance to those on the other side of your accident. They do not provide any benefits to get yourself or your car fixed. The fact is that you could acquire minimum liability insurance for around $500 per year. In comparison, it would cost approximately around $1500 for comprehensive or collision insurance. Sites like Way.com provide detailed information on auto insurance policies, along with amazing deals for cheap car insurance and car care services.  

Getting Up-close and Personal with Liability Coverage  

What is liability coverage, and why is liability insurance coverage considered the minimum car insurance requirement for driving? Liability insurance refers to insurance that covers you from claims raised by people who were injured by your fault or owners of properties that received damages resulting from a collision involving you in the driver’s seat. However, it should be noted that liability damages are accident insurances that apply only to motor accidents.   

Liability insurance is the only format of insurance coverages that provides financial assistance to third parties instead of the policyholder. If your accident results in injuries to another person or property and you come out of it unscathed, fortunately. Liability insurance coverages ensure that the third party or property who sustained the injuries receives financial support, helping them recover. 

Why Should I Spend More Money on Insurances Per Year Then?  

Car Under Water

One of the most asked questions out there when it comes to car insurance and for good reasons too. However, if you plan to ditch extra insurance coverage because it will save money, get ready for disappointment. However, let’s talk about the two most popular insurance coverage policies – collision coverage and comprehensive coverage with some examples first!  

Collision Coverage  

To make it simple, let’s take a real-life scenario as an example. You are driving your car at 40 miles per hour. The roads are pretty empty. Everything’s perfect until a deer comes out of nowhere and jumps in front of your car. You take evasive action and end up knocking down a light post in the process. There is noticeable damage to your car’s bumper and windshield, which will need fixing, and the light post would also require repairs done. Now there are two different outcomes here:  

You have minimum liability coverage only – Well, the insurance company will take care of the light post. But you will have to pay for the damages to your car.

You have collision insurance coverage and liability – The light post will be fixed without any issues. If you have collision coverage and provided your damages do not require more money to fix than your policy limit, you can claim collision coverage. This will help get you fixed without spending lots of money from your pocketsConsider the insurance policy is $1000, and your car’s repair costs $1200. The insurance company will pay the $1000, and you will only have to pay $200. However, if the damage is just $200 or $350, it would be the best idea to repair from your own pockets and save the collision coverage for even costlier accidents in the future.  

Comprehensive Coverage  

Consider the same deer crossing scenario, and instead of swerving, you end up hitting the deer and damaging your car. This is precisely where having access to comprehensive insurance comes in handy. As the name suggests, comprehensive coverage covers all types of damages inflicted due to a non-traffic accident. This could involve anything from colliding with wildlife excursions onto the roads to natural calamities like floods, earthquakes, hailstorms, etc. Damages caused by criminal activities like car theft, vandalism, or issues beyond control like catching fire or exploding all fall under comprehensive coverages. Cars are expensive, and while traffic accidents are avoidable, most scenarios falling under comprehensive coverage are not. Better to be safe than sorry!  

Bottom Line  

You can save up to $1000 on average by just investing in a minimum liability provided that you have a clean year with zero unfortunate events or accidents taking place. With tens and thousands of vehicles sharing the same road simultaneously, the probability of having a year without even minor incidents is pretty low. Well, we are your car’s best friend, and we will always be there for you if you need help with car care.  

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