If you own and operate a car, you have to buy auto insurance. Whether or not you can afford to buy insurance is another issue.
Under certain circumstances you are only required to carry minimum auto insurance coverages. There are other times when you will be required to carry full insurance coverage.
As far as finding an auto insurance company to work with, that should not be a problem. There are many, many insurance companies to choose from.
To cover your issue of affording to buy auto insurance there are special low cost auto ins companies available. These low cost insurance companies sell minimum insurance coverages. And then there are auto insurance companies that offer full coverage.
You should find an insurance agent who can advise you on which coverages you need and can afford. You should find an agent who can advise you on the importance of credit ratings. Insurance companies take credit ratings very seriously and you want an agent that understands that.
Auto insurance companies today make it very easy to reach them and to work with them. You can contact the insurance company directly or indirectly.
3 reasons why you need auto insurance
#1 – It is the law.
- In most states it’s the law that you own auto insurance.
- You can just carry minimum coverages.
- Minimum coverage would be, liability only.
- Liability can be the most expensive coverage of auto insurance.
- But, since you’re just required to buy liability, you save money by not having to include the other coverages.
- But remember tha liability does not fix your car if its damaged in an accident.
- Liability just repairs the other persons car and bodily injuries.
#2 – Financing your car.
- Auto insurance is required by the finance company.
- The finance company or bank owns your car until you pay off the auto loan.
- Most finance companies or banks require full coverage.
- Full coverage includes liability and comprehensive and collision coverage.
- Since the bank or finance company owns the car, they want it put back in mint condition if you default on your loan and have to return the car.
- If you have to return the car, they want it ready for resale.
- If you don’t carry full coverage and the car is damaged, you will have to pay out-of-pocket costs to repair it if you default on the loan.
#3 – Leasing your car.
- Auto insurance is required by the car dealership or the leasing agent that you use to lease the car.
- You don’t officially own a leased car, the leasing agent or the car dealership own it.
- So they also want it back in perfect condition when you return it after the lease is up.
- Again, if you don’t carry full coverage and you damage the car, before you return the car at the end of the lease you will have to pay for repair costs out of your own pocket.
You do have choices. You don’t have a choice on buying auto insurance, but you have a choice on how much and what auto insurance companies you buy from.
You can purchase low cost auto insurance and just get minimum coverages when you lease a car or finance it, but be ready for extra costs if there is damages to the car.
You can also purchase low cost auto insurance to satisfy the legal requirement to carry auto insurance.