In most states, auto insurance is a necessity to operate a vehicle legally. And, if you are on a tight budget, it may seem like a good idea to purchase the least expensive plan you can find, just to comply with your state’s minimum requirements. While this may be a good first step, it certainly is not enough to protect you and your loved ones in case the worst happens.
Why You Need to Purchase Auto Insurance
Legality: Most states in the U.S. require you to have a certain minimum level of coverage.
Financial protection: If you are in an accident, you may be held responsible for paying for the damages caused to another person’s property. Buying a policy that provides adequate coverage ensures that most of those bills will go to your insurer.
Lender requirements: If you have an outstanding auto loan, the lender will likely require you to buy a comprehensive car insurance plan. That’s because the lender legally owns your car and needs to ensure it is finally secure.
How Much Auto Insurance Should You Opt For?
It’s best to get as much insurance as you can afford, unless, of course, you rarely drive your car and are certain that you can pay for damages in case of an accident or mishap on the road.
Top Auto Insurance Companies
Here are some of the top auto insurance companies in the market right now:
State Farm: State Farm is the biggest auto insurance company in the county and is an excellent choice for those who want affordable rates and a personalized experience.
Geico: Geico is one of the top auto insurance companies, and rightly so! The insurer offers low rates, an easy shopping experience, and has national availability.
Progressive: People who’ve had previous accidents but still want to keep their premiums low should consider Progressive. But the coverage options are mediocre, and the claims satisfaction ratings are average.
Allstate: Allstate has pretty good claims satisfaction ratings, making it a good choice for people who’ve raised claims in the past and new drivers. However, be prepared to pay higher-than-average premiums. That said, the insurer does offer a number of discounts to make the policies more cost-effective.
