Should I Drop or Reduce My Auto Insurance Coverage Due To Financial Problems?
The Insurance Institute of Highway Safety reports that consumers are dropping auto insurance coverage in record numbers. They estimate that by 2010, 1 in 6 will be without auto insurance coverage. Now, with many coming under extreme economic pressure, some are not renewing their auto insurance coverage or letting their current auto insurance coverage lapse. Unemployment and the number of uninsured drivers always have had a parallel connection, so the more unemployed, the higher rate of those without auto insurance.
To cope, some are looking at reducing their auto insurance coverage, figuring it is better than dropping their auto insurance altogether. In many ways, some is better than none, but there is a danger in being underinsured. With very little auto insurance coverage, you could be liable for thousands of dollars in a major at fault accident.
Most every state requires minimum amounts of auto insurance liability coverage. If anything, most states minimum levels of auto insurance would likely leave you underinsured. Talk with an auto insurance agent about your auto insurance coverage needs. Ask yourself, if I caused an accident, how much money would possibly be needed for medical expenses, auto repairs, auto replacement, legal expenses and pain and suffering payments? Sometimes an older car may be able to drop collision and comprehensive auto insurance coverage. If a car carries little value, sometimes it may be more cost effective to drop these types of coverage because it may cost more to fix the car than the car is actually worth.
Increasing your auto insurance deductible is one way to cut your auto insurance bill down to size. The caveat: you have to pay more out of pocket when your deductible is due for a claim. Compare auto insurance quotes to get the best possible rate for the coverage you are looking for. It only takes a few minutes and you could save money without reducing or dropping your existing auto insurance coverage amounts.
