Every state in the U.S. requires drivers to have car insurance, and each state has minimum guidelines in place. This allows drivers to choose policies that offer very minimal coverage, yet the coverage they have still meets the legal requirements. While choosing minimal coverage will save you money, here are some of the downfalls of only having the minimal coverage required by your state's laws.
You will have to pay for your own repairs after an accident
With minimal coverage, your auto insurance policy will not offer any coverage for repairs your car needs if you cause an accident or if something happens to your car, such as vandalism or a collision with a deer. Do you have the money it will take to pay for repairs if something happens to your car? If not, you may run into a huge problem if anything happens to your vehicle that you are responsible to pay.
Someone could sue you
Did you also realize that even if you have the coverage your state requires, you could end up with a lawsuit against you? For example, if you cause an accident that results in major injuries to someone else, that person could end up suing you for damages. The person would first make a claim against your insurance policy, but the insurance you have would not be enough to cover the costs of the damages. If this happens, you could lose anything you own if you lose the case.
You could be responsible for repairs if you get in an accident with an uninsured driver
One thing you might not know is that you could end up responsible for paying car repairs for your vehicle if an uninsured driver causes an accident. While insurance is required, there are still a lot of people that choose to drive without it. If someone without insurance collides with your car, that person will not have an insurance company to file a claim with. You could sue the person for damages, but he or she might not have any money to pay you with. In that example, you would be required to pay for your own car repairs, even though you did not cause the accident.
If you want to protect yourself and your car, you may want to obtain an auto insurance that offers more than minimal coverage. To learn more about the costs of an auto insurance policy, call an insurance agency today.