Three Reasons You Should Think Twice Before Buying A Minimum Coverage Auto Insurance Policy

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It may be tempting to buy an auto insurance policy that is the minimum coverage required by law in your state. Although this policy will be cheap today, it may not be so cheap when someone or something damages your car, and there is no one responsible to pay for the damages. This is true whether your car is new or old. It may save you money to add a few options to a minimum coverage policy. The following are a few of the more important issues you need to think about.

You may be hit by an uninsured driver

Although it is true that a few states require uninsured motorist coverage, most do not. If you are living in one of the states that has no requirement, you will be on the hook for all of the damages to your car. You may think that this is not a problem because everyone driving is required to have an insurance policy, but not everyone drives legally. Without a state requirement, you need to protect yourself with this additional coverage.

You may have your car stolen

With minimum coverage, you may lose the total value of your car. You may think that your car is not going to be stolen because it has a low market value, but you are likely mistaken. Older cars are often worth a lot more for their parts than they are as a complete car. Before you shrug off the idea of a stolen car, you need to get a quote on theft for your particular make and model. Factoring in a large deductible, it may make sense to have this type of coverage on your policy.

Damage to your car with no one to blame

This can take many forms. A hit and run is one example. Your car can be parked while you're away, and when you go back to your car, it may be damaged from a collision with another car. There is no note; the driver simple left. If your car is old, perhaps you can live with a dent, but if the damage is in a place that makes the car undriveable, you may need to tow it to an auto body repair shop, and have it fixed.

In general, if your vehicle is damaged, through no fault of your own, and there is no one to sue, then you should think about adding coverage to protect yourself. Even cars with low market value may need to be replaced in the three situations listed above, and having coverage will make this less expensive.