Regardless of the state you live in, in many situations, you have the ability to choose to carry the minimum auto insurance coverage. Typically, you have the option to carry the lowest cost insurance when you own your vehicle outright. Although doing so may seem like the best option, you may be jeopardizing your financial future.
Minimum Insurance Places You on the Hook
When it comes to getting minimum insurance, most people do it because they want to stretch their dollar. Unfortunately, carrying minimum car insurance isn’t the best option to stretch your hard-earned money. In fact, depending on the coverage level you select, you are on the hook for the rest if you are in a wreck. For instance, if you get into an at-fault wreck with someone driving an expensive vehicle, although your insurance can cover the other person’s costs, you may be sued for the difference between the actual amount your auto insurance paid out and your coverage limit.
Liability Doesn’t Help Replace Your Car
Whether you have one car or multiple cars, your car(s) aren’t disposable. It’s likely that you rely on your car(s) to travel back and forth to work, or you rely on them to take your children back and forth to school. If you get into a wreck with just liability coverage, you are responsible for covering the damage to your car. Even if you have a savings account, that doesn’t sound appealing. In most cases, drivers don’t have a savings account, so the wrecked car is taken off the highway indefinitely; you’ve disposed of it, at least until you have the money to make the repairs. If you have one car, this could potentially be a nightmare.
Collision and Comprehensive Coverage Protects Your Savings
When you have full coverage, both comprehensive and collision, you get auto insurance coverage for things like a tree falling on your car or someone stealing your car. In situations such as these, you can find comfort knowing that your car insurance company is your financial partner that helps you repair or replace your vehicle. As a result, you don’t have to tap your nest egg for thousands of dollars to make the repairs or replace your car. Effectively, collision and comprehensive car insurance protects your savings and your financial future.
Whether you have a car with a loan or a car you own outright, you should consider protecting it with multiple coverage options. Although liability coverage is a great, low-cost option, you’ll find that liability coverage may not be the only good fit for your household.
Do you have enough coverage? Call Mitchell & Mitchell Insurance Agency at (888) 512-8878 for more information on San Jose auto insurance.