Every state in the United States requires you to buy car insurance before you set out on that state's roads. However, every state also makes a form of it available to its drivers so that as many people as possible can afford to legally drive a car.
The type of insurance we're talking about is simple, basic liability insurance.
A minimum liability policy is generally designated by three numbers. For example, your state's basic liability policy could be called a 20/40/20 policy.
[These numbers have simply been chosen to illustrate how a basic liability policy works and are in no way intended to reflect the minimum amount of insurance which your state will require you to purchase in order to legally drive a vehicle. Check with a local car insurance agent or with your state's department of to find out what the minimum liability insurance is in your state.]
To illustrate, we'll assume that you're purchasing a 20/40/20 policy. What this means is that your insurance will pay up to $ 20,000 in medical costs for any one individual who's hurt in an accident with your vehicle, with a maximum cap of $ 40,000 on the medical bills it'll pay to all injured victims of the same accident , regardless of how many there are or what the extent of their injuries are. The final "20". In the above example refers to the maximum amount ($ 20,000) that the insurance will pay for property damage. Property damage includes the repair or replacement of the other vehicle in an accident.
There are a couple of things you need to keep in mind when it comes to buying the cheapest car insurance you can find.
First, the cheapest insurance may not be enough to cover all of the medical expenses or to cover all of the property damage resulting from an accident. If your cheap liability insurance doesn't cover the actual medical or property damages that result from an accident, you could've personally held responsible for making up the difference out of your own pocket.
This could mean that you'd be forced to liquidate any stocks or bonds you own. It could even result in you losing your home or having your wages attached.
Secondly, a cheap liability policy doesn't pay a penny toward your medical expenses and it won't pay for the repair of your vehicle at all.
If your vehicle is being funded then your lender will require that you purchase additional car insurance, including collision and comprehensive coverage, which will repair your vehicle if it's in an accident, stolen. Damaged by natural causes. But even if you own your vehicle outright you still must decide if the cheapest insurance is right for you, your situation and your budget.
If so, then the cheapest place you're going to find basic liability insurance is online. If you really want to ensure that you're getting the best deal possible then you'll not stop after comparing prices at just one website –. you'll take the extra time to compare prices at at least 3 different price comparison sites.
This is the only way that you can feel sure you're seeing the prices from every company that offers low-cost car insurance in your state. Once you've reviewed the price that every company is charging for the basic minimum liability insurance in your state, all you've to do is pick the lowest price you've found.
That's it. Just remember to take the time to make price comparisons on at least 3 different websites and you should've no trouble lowering the cost of your car insurance to the rock-bottom minimum required for you to legally drive in your state.