Whether we like it or not, most affordable or cheaper insurance policies will not give you the full protection that every driver need. This will open up a whole door of opportunity for financial obligations to get into. There are unusual situations that could possibly lead you to think that affordable policies are indeed, worthless. The question can you afford to cover what an affordable insurance coverage will be unable to provide? If your answer is yes, clearly a budget insurance policy is all you need. For those who have answered no, here are a few situational reports where you need to reassess your insurance coverage.
Hit by an uninsured driver
Some people are deliberately getting rid of their uninsured motorist coverage. This is only understandable because dropping off the supposedly unnecessary coverage will reduce the insurance premiums. However, do keep in mind that many policyholders have had regrets why the chopped off this particular coverage. Although nearly all states in the US are mandating drivers to secure enough insurance coverage, in reality, there are areas where in uninsured motorists can be as high as 17%. This could only mean that if you drive on these areas, the likelihood of being hit by a driver with not enough insurance coverage is highly probable. What this means to you is that you are left with nothing but a huge hole in your finances. Uninsured motorist coverage is not an expensive policy because the typical price is only $100 a year, which could potentially save you tens of thousands of dollars to cover your expenses in case someone will hit you and does not have an insurance coverage.
In case you are sued
This goes to the policyholders that are only carrying a liability only policy. Again, each state has its own minimum liability requirements. But do keep in mind that you are only protected that far. Liability coverage is of very limited capacity in terms of paying the aggravated party. For example, you get into an accident where someone needs to be hospitalized for a few days. However, the doctor recommended that he needs physical therapy and this would take a little short of three months. Now, will your liability coverage able to protect you from these three-month expenses? The answer is no, because most liability coverage will only provide you with a $10,000 mark and anything beyond that is up to you now. Do keep in mind that it is possible that this $10,000 coverage will be exhausted in a matter of 2 to 3 days in the hospital. If the driver finds out that you do not have enough coverage to pay for the next batch of expenses, you can be sued at any time. Before using the liability only policy, you should ask yourself if you are ready to face this challenge.
Using rental vehicles
Again, most policyholders would end up dropping off rental coverage in order to save a few dollars. Rental coverage is usually needed if you use a vehicle after an accident because your primary car is still being fixed. Rental car coverage is expensive if you are going to purchase this policy only after an accident. If you do not want to add another cost or do not want to use the public transportation, I would suggest that you leave it on your current policy. $30 a year for rental coverage is comparatively a lot cheaper than paying $30 a day if you choose to have it on your own. Common sense would tell us that by just having it during your purchase would save you a considerable amount of money. Given the fact that car repairs usually take weeks, this coverage will be extremely beneficial on your part.
The key thing to remember in auto insurance is to deal with these uncertainties and vulnerabilities with proper coverage. This will ultimately make some substantial savings in your part instead of paying your own money because your insurance provider would cover these expenses on your behalf during an accident.
