Saving money on your insurance premiums is wise. Buying insufficient coverage just to save premium cost is not. Auto insurance coverage is not inexpensive and seems to consistently confuse shoppers. Those few remaining U.S. states that lack an insurance coverage requirement have financial standards that drivers must meet. Often, car owners need more financial assets than those who simply buy adequate insurance coverage in those states that accept no insurance protection.
However, if you are focused on obtaining the cheapest auto insurance available, you have some options. Understand that, in most U.S. states, insurance “follows the car.” Therefore, should you opt for the least expensive type of auto insurance, liability coverage, you may only be fully covered when you are driving your insured vehicle. Should you borrow a vehicle from a friend or family member and suffer an accident, the first line of defense will be the insurance (or lack thereof) on the borrowed car. Should you be deemed “at fault,” however, your personal liability coverage will probably be required to reimburse your friend’s company for paid claims.
The cheapest type of auto insurance coverage is liability. Do not misunderstand this statement, as liability insurance is not inherently “cheap.” Minimum state law typically requires, at least, liability coverage. Individual states determine he minimum limits each driver must carry. Common liability minimum coverages are in the $25,000 per person, $50,000 per accident (regardless of the number of injured persons involved), $10,000 property damage and around $10,000-$20,000 uninsured (or underinsured) motorist coverage.
Although the cheapest car insurance coverage, minimum liability policies are often insufficient for many drivers who have more valuable assets (homes, boats, bank accounts, etc.) to protect than the least expensive insurance can cover. Further, neglecting to purchase collision and comprehensive, e.g., theft, coverage will save you premium dollars. However, should your car suffer physical damage, broken windows or theft, costs to repair or replace your vehicle will come from your pocket and personal funds.
Liability-only coverage will be the cheapest coverage in all U.S. states. However, it may not protect you to the level you want or need. Yet, it will help. Something (liability insurance) is far better than nothing. Even if you seek the cheapest car insurance, shop via the Internet. Good options are often those independent agents with interactive websites that allow you to shop multiple companies and receive several quotes for identical protection.