There are many things to think about when shopping for car insurance other than price. You should carefully consider all insurance coverage options, which will play a large 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 down the road. Why might you ask? Getting the state minimum coverage can leave you naked, so to speak. In the event of an auto collision, the amount of coverage you need to cover the accident could be considerably more than your policy limits.

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

Get the best car insurance for your needs

Let’s stick with 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 collision, guess what, your plan wouldn’t pay for your vehicle repairs. If it totaled in full, that means you just lost $ 15K, which is a lot of money.

Now that low-cost liability policy only cost him thousands. Simple public 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 much of it, you may be able to take this risk. Also, if you are a college student with an old trip that is not worth much, you can take the risk and stay within your budget. However, if you have an expensive car and assets to protect, you will 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 specialized injury attorneys seeking new cases. This means that if you are involved in a vehicular incident for which you were held responsible, a limited policy can affect you again. Let’s say you only have $ 50,000 protection in medical damages. You check your cell phone while driving, run through a red light and t-bone a cute lady in a used Honda. She goes to the hospital for two weeks and accumulates $ 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 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-a-month money-saving policy will only cost you a fortune.

The most important thing to think about when buying car tickets is protecting 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 of a serious collision, you will be adequately covered and will not be financially affected. You might pay $ 130 per month and even more for a higher limit plan, but in the long run, it’s the smart decision to make.

You can take advantage of good driver or retiree discounts and save 5% or more. Another great tip is to increase your deductible to $ 1,000 or more. This way, you can buy an improved supply plan at a lower price. Just remember to put the $ 1k aside in the unfortunate event that you have an accident and need to file a quick claim.

Buy car insurance outright and save big

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