Protecting your assets while buying cheap auto insurance

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shutterstock_66268714One must not look at just the monthly premium while deciding on purchasing the auto insurance cover.  There are many other aspects that will have to be looked into before purchasing the policy.  You might want to skip some optional forms of coverage while shopping for the cheapest auto insurance.  It is always advisable to think of all the possible worst case scenarios and see if you will be able to afford to pay out of your pocket in case there are major damages to you and your vehicle after being involved in an accident.  If you were at fault then you could be sued and if the other driver was uninsured then what would be your options?

–          If you are hit by an uninsured motorist and if you don’t carry the uninsured motorist coverage then you could be in trouble if the motorist at fault cannot pay for the damages that you and your car could have suffered.  If you have the uninsured coverage then the insurance provider will cover all costs if you are hit by an uninsured motorist.  The insurance company will then recover costs from the uninsured driver.  This cover could save you a lot of money and unnecessary headaches as the company will take care of everything.

–          The loss-of-use coverage can help save a lot of money in the event of an accident.  If you are involved in an accident and don’t have this cover then commuting back and forth will become an issue.  With this cover you could rent a car for that period of time until your car is back after the repairs.  Here you will have to pay $30 per year compared to a car rental where you will have to shell out $30 per day.  You can also avoid the frustration of setting up car pools or using public transportation, or being dependent on someone for a ride.

–          Another important cover is the roadside assistance coverage and most people prefer to forego this cover. But this is very expensive and just one tow could leave a hole in your pocket.  Most insurance policies will cover the towing charges only if it has been caused due to the accident, but the towing coverage will also cover costs incurred in towing a vehicle due to some mechanical breakdown.  The average cost for a tow is $2.50 to $3.50 per mile and includes the hook-up fee as well.