Car insurance is just like learning how to walk before learning how to run. It should be taken or availed first before driving. You need to have to insurance coverage before being allowed to drive. Because without indemnity policy, you (as a motorist) will just like be a person trying to run before even learning how to properly walk. You will just be risking yourself to bigger financial obligations when you are an uninsured motorist.
Aside from financial obligations to your victims, caught uninsured motorists will be subjected to penalties or even jail time in accordance with the law. Better follow the law, for most states of the United States, insurance is mandatory to drivers.
After establishing the fact that you need to avail an indemnity policy, next is to decide which one you should want to have, a cheap or expensive policy. Of course money wise, most motorists would choose cheap car insurance. But do you really want a cheap one?
Cheap indemnity package would have its advantage as, of course, cheap monthly dues. But what would be its disadvantages? When you choose a cheap service or product, it would most of the time, if not always, mean that you are sacrificing its quality. And when you sacrifice the quality of an indemnity policy, you are sacrificing its coverage. Cheap policy will have much less situations that it could cover.
To fully understand the disadvantages of having cheap insurance, try to understand the Third Party Insurance Coverage. This policy is the cheapest one offered by car insurance companies. It only covers the situation wherein you as the policy got into an accident and you are at fault and a third party are involved.
Other than this situation, this policy will no longer take into effect. Talk about limit to coverage. You indeed save money for it is cheap, but you will still be subjected to financial obligations if other kind of situation occurred.
But with expensive indemnities, coverage is not a problem. The most expensive type of policy is the Fully Comprehensive Insurance Policy. It is expensive for it covers all situations, from collision-related damages to damages caused by natural disaster. With this, you name it, it’s covered. But the down part is, it costs a lot.
So in short, it does not need to be very cheap or very expensive to be truly useful. What matters is that the auto insurance cost fair enough with the service it offers.