You have probably seen commercials for car insurance advertising the benefits of having the state minimum coverage. While bare-bones car insurance plans are often less expensive and get drivers the legally-mandated car insurance their state requires, they leave a lot to be desired. Having even a very small amount of coverage is better than not having any automotive insurance, but it may leave drivers vulnerable. Minimum coverage is often not enough protection in the event of an accident.
Cheaper Is Not Always Better
Although a cheaper option, there are many problems that can arise when a driver only has the minimum amount of car insurance. For instance, if the driver is in an accident which injures another party, he or she will probably have to pay damages. If the driver’s insurance does not pay the complete amount he or she owes, the injured party can pursue damages against him or her until the debt is paid. The costs can add up quickly. An at-fault driver can be required to liquidate his or her assets, including their car and home in order to pay the debt. In some cases, the driver’s wages may be garnished.
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