Situations Where Minimum Auto Insurance Won't Cut It

Posted on: 30 April 2017

Minimum auto insurance may seem like a good idea until you experience a loss that makes you reconsider. But, if you are interested in getting good insurance coverage before experiencing an automotive nightmare yourself, consider these situations where it's crucial to have more than just the basic insurance coverage.

When You're Stranded on the Side of the Road

Roadside insurance may be just a few dollars more per month, and it provides a wide range of benefits. If you need be towed, that could cost you over a hundred dollars, but roadside coverage will do it for free. Things like battery changes, fuel delivery, and battery jumps may also be included.

When You're at Fault for an Accident

If you get in an accident, your insurance company will look at fault. If you are responsible for an accident, they cannot cover you unless you have collision insurance. If the other person is found to be mostly at fault, you can file an insurance claim with their insurer instead and use their liability policy to recover your losses. But, since an accident has a 50% chance of being your fault versus another person's, you may want to consider protecting yourself in case you are found to be at fault in the situation.

When You're Not at Fault for an Accident

Above, we talked about how you can get compensated for an accident that isn't your fault. However, that process isn't always simple. It may take weeks for the other party's insurance company to even admit they are at fault for an accident. Then, there is the process of estimating damages to your vehicle, estimating medical expenses, and creating a demand letter for any other expenses you have incurred. When the equation includes lost wages, pain and suffering, or other subjective items, the process could stretch out for months. During that time, you'll be paying for repairs and medical bills out of pocket. If you have collision insurance or medical coverage, these policies will pay your bills and then work with the at-fault driver's insurance company for reimbursement.

When Your Car Gets Stolen

Finally, let's cover perhaps the worst thing that can happen to your car: theft. If you would be unable to replace your car if it got stolen right now, then comprehensive auto insurance is an important thing to consider. For an insurance policy that may pay out thousands of dollars and save you in a pinch, comprehensive auto insurance coverage can be surprisingly affordable to add.