What do most affordable auto insurance policies cover?
In the United States, most affordable auto insurance policies will only provide the minimum level of compulsory insurance coverage. Different states have different levels of mandatory insurance requirements which will usually include bodily injury liability and property damage coverage. Some states have made personal injury protection and coverage against uninsured or underinsured drivers compulsory as well.
Does this mean I’ll only be adequately covered on certain things?
Absolutely! Affordable auto insurance policies aren’t always as attractive as they first appear. Auto insurance should only be purchased cheaply if it provides a genuine value-for-money alternative to more expensive policies. A good auto insurance policy will provide a combination of effective cover at a reasonable price. If a policy looks unrealistically cheap, it’s usually because the level of coverage contained within it only meets the absolute minimum requirement for the state you are living in.
I’ve already purchased what I thought was a good policy. What shall I do now?
Contact your insurer and establish the level of coverage you have been issued with. Most companies will happily upgrade your cover although this will obviously come at a price. If you are driving an older vehicle, a basic level of insurance cover might actually be suitable. However, those who own a new vehicle, a nearly-new vehicle or a vehicle with an outstanding loan secured against it should always consider a comprehensive policy. As well as providing complete coverage, motorists can enjoy total peace of mind if an accident actually occurs.