If you’re carrying the state legal minimum car insurance, it turns out that this might not fully protect you in the event of an accident. If you’re like many individuals, you will have to rely on the minimum liability coverage in order to have the legal requirement to operate your motor vehicle on the roads of California. For most people, this kind of insurance coverage is the only way they can afford to drive.
Whether it’s no driving history, their age or poor driving history, premiums with traditional insurance companies may be unaffordable. Although cheap car insurance coverage might seem like the solution to all of your problems, it is important to understand how much this can cost you in the event that you are involved in an accident. You want to ensure that your policy covers all potential risks including uninsured or underinsured motorists. You also want to look into whether or not it covers you in the event of a hit and run accident or vandalism. Make sure you also identify one of the most common reasons why your car insurance coverage may be cheaper than other individuals. This will have to do with your deductible.
Carrying the bare minimum means that you will frequently have to meet a much higher deductible. In the event that someone else damages your car you may have to cough up hundreds or thousands of dollars to make your vehicle operational again. This can be a significant financial blow, particularly if you were already in financial straits and purchasing the minimum amount of car insurance beforehand.