What Do You Get For Your Car Insurance Dollar?
Whether you pay for car insurance monthly, quarterly, semi-annually or yearly, you probably are paying quite a bit for car insurance. You may also be wondering what you get in exchange for the dollars that you pay for car insurance. In short, the answer is peace of mind, but the longer answer may help you to understand where those insurance dollars go.
Purchasing car insurance fulfills your state’s financial responsibility laws. These laws are different in each state. Some states only require drivers to have very little liability insurance, while others require more liability insurance and other coverage as well. In some states, the insurance company is required by law to report if you allow the coverage to lapse by even one day and the state can cancel your vehicle’s registration or your driver’s license until you submit proof of insurance and pay a fine or the administrative cost to reinstate.
Driving without car insurance, however, can cost you much more than just a fine. If you are in an accident, you can be held financially responsible for the other person’s vehicle and medical expenses. In addition, you will likely be ticketed for driving without insurance. These expenses can far outweigh anything you might pay in insurance fees.
You may find yourself in the place where you must pay to have your own vehicle repaired. Without a vehicle you will find it difficult to get to work or take care of other errands for your family. If you have to rent a vehicle while your vehicle is being repaired or until you can afford a replacement vehicle, then the costs can add up very quickly.
In addition, the comprehensive coverage on your vehicle covers it in the event of vehicle theft, vandalism or if windows are broken and need to be replaced. In many areas car theft is far more common than we would like to think. If your car is stolen, it is not usually recovered without some damage. Many stolen vehicles are eventually wrecked and then abandoned. Others are stripped and sold for parts.
Newer vehicles are often required to have comprehensive coverage by the loan company. If you do not have the insurance the finance company will purchase their own insurance on the vehicle that offers you no coverage, but will pay off the loan if the vehicle is damaged or stolen. This insurance is very costly and will be added to the end of your loan on the vehicle.
Comparison shopping for insurance is a great way to save money that you pay for insurance. There are many companies that offer free insurance quotes. You will find several of these companies online. For the most accurate quotes, go ahead and give your personal information. Then once you have collected three to five quotes from different companies, take time to compare each quote to find the best price for your insurance.
Insurance brings peace of mind but does not have to break your bank account.
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