You wanted to buy a car. You saved money for the vehicle, delved into which car model or brand you wish to purchase, and found the best for you. Finally, you bought a car. Congratulations. But buying a car doesn’t mean you can hit the road freely. One has to take care of a few things before you can take your vehicle to the road. The first and foremost thing is to search and buy yourself auto insurance. One might think the best strategy is to purchase car insurance that requires minimum coverage payments to save a few thousand dollars to recover the savings you have spent buying a car.
However, you’re mistaken here. Please don’t do it! Don’t pick a minimum coverage. Choosing a minimum coverage policy can cost you more than you can imagine. One can choose the cheapest minimum coverage, but after considering a few factors. These factors can help you choose the most affordable yet best option of minimum coverage, so don’t regret it later.
For instance, imagine you take your new car on to the road and have a collision with another vehicle. The other doesn’t have auto insurance or minimum coverage- you are in trouble. Because if you have chosen a minimum coverage policy that doesn’t include uninsured motorist coverage, you are doomed because you have to pay for your car’s repair expenses.
There are times you get damage from the things you never considered in your life. Usually, car owners don’t consider a few conditions that might hurt them in the worst possible way, such as wind, deer, or hail. Furthermore, an incident or car theft happens when you are least prepared. For such incidents, you must add comprehensive coverage to your insurance plans. Minimum coverage doesn’t have comprehensive coverage, so you must add it into your coverage plans to be better prepared for unforeseen emergencies that might cost you your savings. Because if you don’t have comprehensive coverage, you will have to pay for the entire cost on your own.
Now imagine again you are involved in an accident with another car, and it is your fault. If you have minimum coverage, what will it cover? Nothing! As you cannot be insured for repairing or replacing your car, your minimum coverage doesn’t include a collision coverage policy. You are again in trouble. You have to pay for all the expenses incurred on your vehicle. For that, you have to pour all the savings into the recovery expenses that you saved from buying the cheapest coverage.
Imagine you met with an accident and it’s your fault, the other party must be seriously injured and admitted to the hospital. Hospital means enormous medical bills, and if the injuries are severe enough, it can exceed six figures. If you had chosen minimum coverage, it would only cover a portion of the medical bills, and the rest of the bills would be paid out of your pocket. As you are accountable to pay for whatever your insurance cannot pay.
The amount on the minimum coverage might be high, but the amount can be covered quickly, surprisingly. After all, in comparison to repairing expenses and medical bills, it seems less. Think of it this way; auto insurance consists of many policies. These policies don’t only provide coverage to you or your car but also protect you from the other party that you might have hurt. Coverage has a direct relationship with payments, which means low prices will provide insufficient coverage.
So how can you handle this dilemma? You have just bought a car and don’t want to empty your pockets, but you don’t want to buy minimum coverage. Consider purchasing coverage with high deductibles or look for one step further from the basic minimum coverage.