Low Cost Auto Insurance

Reader’s Question:

Is it a good idea to purchase low cost auto insurance?

Mark

Milwaukee, WI

One clear advantage that low cost auto insurance has is its price and availability. With the economy being what it is today, more and more drivers are finding it difficult to afford full or even high coverage. Auto insurance companies have also adapted to the times by offering more low cost auto insurance packages for the common working man or woman who just wants to be able to drive around without having to worry about getting penalized for not being insured.

Low cost auto insurance, however, usually means low coverage. Most policies that fall under this label commonly offer only the minimum requirements set by the state’s financial accountability laws. But it can sometimes happen that following an accident, repair costs and medical expenses exceed an insured driver’s coverage limits. In such an instance, the driver, despite having auto insurance, still ends up drawing from his own pocket just to cover the excess cost. Once declared liable by the courts, a driver is under legal obligation to recompense the injured party whether he can pay or not. That is why most state insurance regulators advise motorists or any other consumer looking to buy insurance to purchase as much auto insurance coverage as they can afford.

It is really a matter of striking a balance between what your budget can accommodate and what your needs are. Figure out how much auto insurance coverage you really need, then match that with how much auto insurance coverage you can really afford.