Why Minimum Coverage is a Bad Idea
Auto insurance is one of those things that you can never really have too much of. If you don’t have it, or don’t have enough, a significant accident could leave you with thousands of dollars worth of bills to pay. That type of calamity could bankrupt just about anyone. Minimum coverage, while satisfying state laws for auto insurance, is a bad idea for many financial reasons.
If you opt to get minimum automobile insurance coverage, you are probably worried about the monthly bill. The problem with minimum coverage however, is that while you may be saving a more money each month, if you get into a major accident and are at fault, the money your insurance company pays will be capped at a certain point, and all costs above that coverage maximum will be your responsibility to pay. If the person you’ve injured has huge medical bills, you’ll be responsible for them after your insurance coverage has been exhausted.
Minimum coverage is a bad idea not just for financial reasons, but for ethical reasons as well. If you have minimal coverage, and you’re responsible for an accident that costs thousands of dollars to another person and can’t pay for any of it, you’ve burdened another person with huge debt.
To learn more about why minimum coverage is a bad idea, call or meet with an auto insurance representative and go over your questions in as much detail as you need.