Why Minimum Car Insurance Coverage Is Not A Good Deal

Why Minimum Car Insurance Coverage Is Not A Good Deal

If you drive a car in the United States there are two things you really must have. The first is a valid car insurance policy and the second is a way to save on car insurance

While the first is mandatory, the second can be a lot tougher to accomplish and when you’re searching for auto insurance ashland you will likely find yourself riding that line between getting an affordable premium and having sufficient coverage in the event something happens. 

But that happy medium is becoming tougher to reach these days as many families are dealing with a monthly budget that leaves very little left in the bank to pay for car insurance. You know you can’t drive without it, yet you can’t really pay those high premiums to get the right coverage. 

The solution tends to be choosing a policy that provides only the bare minimum of coverage, and why not, you’re paying what you can in order to comply with local laws that govern the operation of a motor vehicle on the public roadways. After all, you know you better have that insurance card should you be asked for it by a police officer, yet you are working with a limited amount of resources. 

Problem solved, right? Not so fast. You could actually be making the problem worse and end up paying more, a whole lot more, in the event something does happen and you get into some kind of fender-bender with another automobile. 

The truth is, despite what some insurance companies will try to sell you, minimum car insurance is almost like having no car insurance whatsoever. Sure, it gets you in compliance with the law and you can provide proof of insurance when asked for it in the event you get pulled over or collide with someone or something. 

But that’s about all it will get you because minimum car insurance sure won’t be there to pay for any of the things that car insurance is supposed to cover in the event of an accident. The money you think you’re saving on those premiums is going to end up coming out of your pocket when the time comes to file a claim, because, really, how much do you think your insurance company will pay out on a policy that barely meets the legal limits? 

Think about it, should something occur on the road, here is what you’ll likely be left to deal with: 

Collision Claims

Most minimum insurance policies don’t include many of the basics and if they do, the amount the insurance company will pay out certainly won’t be enough to cover all the costs. Consider a claim filed in the event you get into an accident with another vehicle where you are deemed at fault. 

Your insurance company won’t be paying you very much, if anything at all, in order to repair or replace your automobile. 

Comprehensive Claims

This form of coverage is intended to pay for the damage to your vehicle when something happens like a tree falls on it or you hit a deer by mistake or perhaps someone breaks in and steals the thing. If you fail to include comprehensive coverage in your policy, you will be paying for any eventualities that occur all from your own pocket. 

The insurance company sure won’t reimburse these costs because your coverage limits just won’t cover them and your provider isn’t likely to offer to pay out of the goodness of their hearts. 

Injury Claims

This is where your minimum coverage can really make you regret your decision to go cheap with your policy. If you get into a car wreck where you are at fault and the driver and/or passenger in the other car sustains some injuries, your car insurance coverage is in place to pay their medical bills. 

But if you are holding minimum car insurance coverage, your policy will be highly insufficient to cover all of the injured party’s medical bills. You may be lucky if the limits of your coverage pay out even a small percentage of the expenses which could total as much as six figures, depending on the severity of the accident. 

If your insurance company isn’t paying off these high costs, the person responsible for covering those expenses is going to be you and you alone. Are you in a position to pay hundreds of thousands of dollars in medical bills for the injured party? 

If you are buying minimum car insurance coverage the answer to that one is obvious.


Donald Phillips