All fifty states mandate a minimum amount of liability auto insurance coverage that every motorist is required to have (for the amount in your state, please see our handy state guides). To drive without this legal minimum amount of insurance is against the law. At the same time, to drive only with this legally required amount is extremely unwise. Let’s examine five reasons why.
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You Could Get Sued For Damage Costs
Let’s say you are at-fault in a collision. You live in an at-fault state and only carry the state minimum of car insurance, which in your state happens to be $15,000. Unfortunately, the car you struck was totaled and is worth considerably more than $15,000. Perhaps you had the misfortune of crashing into a brand new luxury vehicle worth around $60,000. Where is that extra $45,000 going to come from? If you guessed out of your pocket, you would be correct.
You Could Get Sued For Medical Costs
Let’s complicate the above scenario and say that the other driver was injured in the accident. He had to spend a week in the hospital and had surgery. On top of that, he missed three months of work – and he happens to be a high-priced lawyer. Guess whom the insurance company is going to come after in order to recoup their losses? In this nightmarish scenario, the bills could total over several hundred thousand dollars.
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You Have A lot Of Assets
It is not a big risk to go with the minimum amount of insurance if you have nothing to lose. They can’t take what you don’t have. However, if you do have financial assets, like say a house, then you are taking a massive gamble by carrying only a small amount of insurance. If you are successfully sued, you could end up losing everything – your house, your car, all of your investments. It’s a pretty simple rule to follow. If you have something to protect, than carry enough insurance to adequately safeguard it.
Extra Car Insurance Is Relatively Inexpensive
It is possible to buy hundreds of thousands dollars worth of coverage for only tens of dollars a month. This extra amount in premium costs is a trifle compared to what you may owe if you get into a serious at-fault accident. Considering how little it takes to protect yourself and your family, it really doesn’t make sense to be underinsured.
You Can Shop Around For The Cheapest Rate Possible
Still not convinced you need to purchase extra car insurance? Do you still believe additional car insurance is outside your budget? You may believe this because you haven’t shopped around yet. The best, most effective way of finding affordable auto insurance is to get multiple online quotes. And the place to do that is right here, at Cheap Quotes Car Insurance. Simply enter in your zip code in the box below. It only takes a few minutes and it is completely free. You can get multiple quotes and compare rates. Do be underinsured. Have enough car insurance to protect yourself and your family – and find the most affordable car insurance possible here at Cheap Quotes Car Insurance.