You already know why you need auto insurance. Besides the fact that you’re legally required to have it in just about every state, it’s also nice to know you won’t get a $7,500 bill in the mail if you rear-end someone in rush hour traffic. (That’s the average cost of damage in a car accident, not including medical bills, by the way.) Accidents can happen to even the safest drivers, and auto insurance was created to protect everyone on the road.
That’s the number of car crashes in America in 2017, according to the National Highway Traffic Safety Administration. 1,889,000 of those resulted in injuries, 34,247 were fatal. Source: Insurance Information Institute
The trickier question is, how much insurance do you need? And more importantly, how can you pay for the coverage you need to feel safe driving without going broke?
If your goal is simply to save, you could only purchase the minimum required coverage in your state — but that’s a risk that could end up costing you big time if you’re ever in an accident. For instance, if your bare-bones policy only covers up to $5,000 in damages and you’re deemed responsible for a $20,000 accident, guess who picks up the majority of the bill? Hint: It’s not your insurance company.
A smarter and ultimately more cost-effective approach is to figure out exactly how much coverage you need — and what you can skip. And that’s what why we’re here. When you’re done reading this guide a few minutes from now, you’ll have the knowledge you need to start saving on your auto insurance without sacrificing your personal safety or security.