When you are experiencing difficulty in your personal finances, it is often tempting to drop most of your auto insurance and simply have a policy for the legal minimum. Because of the savings, this may be tempting; however, before you do this, there are several things you need to consider. The following are four of them.
What will happen if the accident is your fault?
The portion of an auto insurance policy that protects your car in this situation is called collision insurance. This means that without this coverage, you could end up with a large car repair bill, and if you're short on money, you may end up without a car. Before dropping this coverage, consider getting a quote with a large deductible to see if it becomes more affordable to you.
What will happen if the other driver is not insured?
You may decide that you are a good driver, and you will take the chance of causing an accident. But you still have the problem of an uninsured driver. The accident may not be your fault, but you will have no way of getting compensation for damages. This is more common than you might think. Coverage for an uninsured motorist is not expensive compared to collision, so you need to get a quote that includes this.
What will you do if your car is vandalized?
If you have an older car that you keep at night in your garage, you may not be concerned about vandalism. Although it's true that garage storage reduces the chance of your car being vandalized, it can happen elsewhere, like in a parking lot while you are shopping or at the movies. This is only one example. Of course, you may not be worried about a scratch or a dent, but if the front windshield is damaged, you will need it repaired before you can drive safely.
What will you do if your car is stolen?
You may think you can save money by not insuring your car for theft because of its age. However, you should think again. Many cars have a value that is much greater when the car is sold for parts. There is a large demand for black market auto parts, and the car you think has little value may actually have great value once it is torn down. Insuring a car against theft may not add a lot to your premiums.
Before you decide to drop your collision insurance, understand that even the best drivers can be at fault in an accident. You should also know that there are uninsured drivers on the road, and insure yourself against them. In addition, your car could be vandalized or even stolen. You may find that getting quotes from several insurance agents for the specific coverage you require will save you money and still offer financial protection.
Contact an auto insurance agency for more information.