There are many things to think about when shopping for auto insurance besides price. You should carefully consider all of your insurance coverage options, which will play a significant role in the cost of your premiums.

It may sound a bit confusing, but getting the cheapest policy can actually cost you a lot of money in the future. Why might you ask? Getting the state minimum coverage can strip you bare, so to speak. In the event you are in a car accident, the amount of coverage you need to cover the accident may be considerably more than your policy limits.

Worse yet, you could be sued and have your wages garnished. If you hurt someone else in an accident that you caused and you were unable to pay all of their medical bills, chances are you will.

Get the best auto insurance for your needs

Let’s move on to the cheapest type of insurance plan, basic liability insurance. If you get the state minimums, you can get monthly rates as low as $30. The problem is, your car could be worth $15,000 or more. If you have a crash, guess what, your plan would not pay for repairs to your vehicle. If it totals out completely, that means you just lost $15K, which is a lot of money.

Now that low-cost liability policy alone cost him thousands. Simple civil liability and property damage should only be used in certain circumstances. For example, if you have a vehicle worth less than $3,000 and you don’t drive it much, you may be able to take this risk. Also, if you’re a college student with an older vehicle that isn’t worth much, you can take the risk and stay within your budget. However, if you have an expensive car and assets to protect, you’ll need to purchase additional protection.

The other thing to consider with these cheaper policies is legal liability. The United States is a very litigious country. There are literally tens of thousands of injury attorneys looking for new cases. This means that if you get involved in a vehicular incident for which you were held responsible, a limited policy can come back to bite you. Let’s say you only have $50,000 in medical damages protection. You check your cell phone while driving, run a red light, and bone a nice lady in a used Honda. She goes to the hospital for two weeks and racks up $250,000 in hospital expenses.

Your attorney will immediately sue you for the balance of these costs, which in this example is $200,000. You can go to court and fight this, but it will cost you thousands of dollars to hire an attorney. The judge in this example could award the victim $200,000 plus legal fees, which would likely devastate him. There may be a payment schedule of $2,000 a month deducted from your paycheck for ten years. So your long-term $39 per month savings policy will only cost you a fortune.

The most important thing to think about when buying autoins is the protection of your assets. If you make more than $60,000 per year, get a policy that has up to $500,000 in accident coverage. In the event that you have a serious collision, you will be adequately covered and will not be crushed financially. You can pay $130 per month and even more for a higher limit plan, but in the long run, it’s a smart move.

You can take advantage of good driver or senior discounts and save 5% or more. Another great tip is to increase your deductible up to $1,000 or more. This way you can purchase an upgraded ins plan at a lower rate. Just remember to set aside $1k in the unfortunate event you are in an accident and need to file a claim fast.

Buy auto insurance direct and save big

Now that you’ve selected the type of insurance you want, it’s time to shop around for the best rates.