ifydcat You’ve probably seen ads on television for inexpensive car insurance. These companies are selling basic liability insurance, and do so at very low rates. This type of insurance is geared toward drivers who need inexpensive insurance rates and wish to carry only the minimum required by law, often because their vehicle is low in value.
If you’re thinking about this type of insurance, you need to understand the details before you make a decision. After understanding how the basic car insurance works, you may decide that it is worth it to you to pay a bit more in premiums in order to have more coverage. The following explains how low priced car insurance works.
First of all, it is only liability coverage, which is the coverage that, in most states, is required by law. It covers only the other driver in an accident where you are at fault. This insurance does not cover your vehicle damage or medical expenses.The coverage only applies to damage to the other driver’s vehicle in an accident caused by you.With this insurance, your vehicle is not covered, so you shouldn’t consider it unless you have the cash to pay for your own repairs or down payment on a new car.
In addition, you should consider whether you have enough cash to cover your medical expenses if you’re involved in an accident that you caused. This insurance does not cover you at all. Drivers are not required to carry medical payments insurance, so even if you’re not at fault, there’s no guarantee that the other driver will have insurance to cover your medical expenses.
Before purchasing only basic liability coverage you should also consider whether or not you can afford to cover expenses related to damage to your car caused by events other than an accident. Vandalism, theft and damage from natural elements are not covered by liability insurance.
If your vehicle is worth very little, this coverage may be a good option for you.For other people, however, electing not to carry insurance on your own vehicle could be a financial mistake.
You should also remember that you may not drop your collision insurance as long as you have a loan on your vehicle.
This inexpensive option is a good one for some people.You should give careful consideration to your personal situation before you choose this auto insurance option, however.
Visit Peppercoin Insurance for more information on liability auto insurance and to read more great auto insurance articles including ‘Auto Insurance Is More Than A Requirement‘ and more.
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