Cheap Auto Insurance

We spend a lot of time talking about insurance on your health and your life, but what about your car?

Why Auto Insurance is Essential

“We spend a lot of time talking about insurance on your health and life, but what about the car? You might drive a nice car or a beater. Maybe you have enough money to buy a car if your current one is totaled. There are policies that cover you financially if your car is stolen, damaged by another driver, hit by a natural disaster, or if another driver isn’t insured.”

Dave Ramsey

Comprehensive Coverage

You should have comprehensive auto insurance as well. Comprehensive insurance pays for when your car is damaged (not due to a collision) or stolen. If your car is expensive, you need it for obvious reasons. By chance, if you are driving a beater, it doesn’t cost much to insure, so just keep the coverage. If you have no money, don’t take the risk of having your vehicle totaled, leaving you with no way to get around. Since you wouldn’t get money from the insurance company or your savings, you would be stuck. Don’t put yourself in that situation. Just eliminate the potential stress by having comprehensive coverage.

If you have some money set aside and are driving a less-expensive car, do a cost-benefit analysis. If it only costs $20 a month to insure a $3,000 car, that’s a good deal, since it will take you a longer time to pay more in insurance costs than it would to replace the car if you had no coverage.

Always make sure you are covered in case life decides to hit you … or your car.