Why Minimum Coverage For Auto Insurance Is Risky

Millions of drivers every year get new insurance coverage for their cars, and when they do, they are presented with a variety of choices in terms of the level of coverage and any types of extras they may need. Naturally, many drivers will gravitate towards the minimum coverage that they are legally allowed to drive with, thinking that the need for better coverage is slim, and they’d rather save money.

While saving money is an understandable goal, this minimum coverage approach increases your chances of trouble down the road. It may even wind up being more costly to take this corner-cutting approach. So, what exactly are the risks of only purchasing minimum coverage?

You’ll be uncovered for other uninsured drivers

While you’re doing the responsible thing by purchasing car insurance, even if it’s only the bare minimum, not every driver on the road is making that decision. As a result, if you get into an accident with one of these uninsured drivers, even if it’s not your fault, you won’t be covered. One of the first upgrades beyond minimum coverage is uninsured driver coverage, which will ensure that you’re still covered even if the other driver does not have coverage.

You’ll be out of luck for damages on your car

The minimum coverage you purchase is only the legal protection to make sure that if you are at fault and damage property or another car that your policy will pay for those damages. However, by purchasing the minimum coverage, you haven’t done anything to ensure that damages to your car will be covered in the case of an incident. When you purchase the minimum coverage, any damage to your car will be coming out of your pocket.

You’ll be liable for medical expenses if an accident is your fault

In the worst-case scenario, where an accident is your fault, and the other driver must receive medical care, you are opening yourself to liability and their medical expenses. A policy that goes above minimum coverage can take care of this for you.

You’ll be left stranded without those much-needed extras

Lastly, as minimum coverage gives you no more than it has to, some of the premium add-ons you can attach to your car insurance policy are incredibly useful and could ensure you don’t get left stranded. Roadside assistance, rental car coverage, mechanical breakdowns, and more are the type of additional add-ons you can get that can save you more from costs and inconveniences down the road.

Want to find out more?

Schechner Lifson Corporation can provide assist you with your car insurance policy. With experienced and caring agents, Schechner Lifson Corporation can make sure you’re on the right path!

Considerations When Buying A New Or Used Car

Because the average car is purchased somewhere in the range of seven to ten years in the United States, making the right decision about which one you buy is of the utmost importance. One of the first decisions you’ll likely make when you’re in the market for a car is whether you want to go with a new or used car. Whichever direction you pick, there are a lot of factors to consider.

Let’s walk through some of them with you!

Car Insurance Cost

You can’t drive a car off the lot without insuring it, whether that’s new or used, but the amount you’ll pay for car insurance coverage will vary based on whether it’s a new or used car. The amount you’ll pay in car insurance, though, is directly tied to the car’s worth. And because a new car costs more than a used car, your insurance coverage costs on your new car will be more.

Depreciation

One of the most frustrating parts of owning a new car can be how much of its value is eliminated the moment you drive it off the lot. Depreciation typically reaches 20% the moment this happens. However, the more you drive the car, the more it’ll continue to depreciate, which will be felt if you end up trying to sell or trade-in the car. Of course, the used car will depreciate over time and miles will climb as well, but because you didn’t pay the ‘off the lot’ price, it won’t be as large a percentage of your initial purchase price.

Features

While the costs may weigh in favor of buying a used car, new cars are more likely to have new and exciting features that you want to take advantage of. And these features aren’t just novelties or ‘nice to have’ aspects, like stereo or digital gadgets but include safety features that can keep you and your family more protected. It can be hard to put a price on feeling and being more secure in your car, so if that weighs heavy on you, it may be important to buy a new car to get the safest experience possible.

Financing Options

While the cost of the new car may be higher, getting a new car instead of a used car will typically come with more financing options and incentives. Cash rebates, new car loans with great interest rates, and more come into play on the new car lot that are simply not there for used cars.

You have a lot of decisions to make when you’re purchasing a new car, and there’s no right or wrong answer when opting for a new or used car. It comes down to what your preferences are and what you can afford. If you want to find out more and talk through your options, Schechner Lifson can offer you the right guidance. Get in touch with us today to find out more!