Auto Insurance Is a Waste of My Money

Is auto insurance is a waste of money? In some states you could face jail time, up to $2,500 in fines, and a $250 fee to reinstate your license for no auto insurance.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 27, 2020

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Things to remember...

  • Car insurance is one of the most widely used forms of insurance purchased by consumers and businesses alike
  • Your car insurance policy is usually a combination of different coverage options, such as liability, property damage, and medical coverage
  • Many consumers may see their car insurance policy as a waste of their money, especially since insurance is not a tangible item
  • However, your car insurance coverage is designed to protect you from the costs of an accident, whether physical, financial, or medical costs
  • It’s important to remember that car insurance is compulsory in most states, meaning you must carry active coverage as required by law

Car insurance is a part of your life from the time you start driving until the time that you stop because most states have compulsory auto insurance laws.

Although you may be required to carry car insurance coverage, you may feel that your policy is a waste of your precious financial resources. However, your insurance coverage is more than just a monthly bill; it’s protection from the unexpected.

Compare car insurance quotes today to make sure you’re getting the best price for the coverage you need.

Is car insurance a waste of your money?

Each month you may have several financial responsibilities to handle, which normally include car insurance. When starting out as a young adult, balancing your paycheck among all your different responsibilities may seem like too much.

It’s important to remember that car insurance is a compulsory requirement, meaning it is legally required for every driver, in almost every state.

Insurance coverage is a necessary protection for anyone that owns or operates a vehicle, as many individuals do not have the resources necessary to afford to pay for an accident and the expenses that may come with it.

Many drivers may find that understanding more about their car insurance coverage can help them appreciate the services their insurance provides as well as the purpose it serves in society.

If you feel that your car insurance is a waste of your money, try speaking to your insurance agent or insurance carrier to understand more about your policy.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

How does car insurance help protect you?

Car insurance coverage is more than just a promise on a piece of paper that requires monthly payments; it is protection from unexpected events that you would otherwise be liable for.

Liability is a legal term that means you can be held responsible for actions you performed that resulted in damages. These damages could include:

  • physical or property damages
  • financial damages
  • medical damages

Your car insurance coverage helps protect you from other unforeseen circumstances as well, such as when your vehicle is damaged by a hit-and-run driver, when you hit a pothole, and even when your car is damaged by a hailstorm.

These events may seem like small incidents, but the amount of damage they may cause can lead to a large bill. Your car insurance can help you recover from losses beyond normal wear and tear.

Anytime you are operating a vehicle, it’s important that you carry active car insurance coverage which protects you and anyone on the road that you may be involved in an accident with or anyone’s property you may damage.

Protecting other individuals that may be on the road is one important way that car insurance avoids being a waste of your money.

What type of insurance coverage should you purchase?

Choosing which insurance coverage to purchase is an important decision and one that can be difficult to make if you think your car insurance is a waste of money.

Selecting the appropriate coverage to meet your needs and to protect you financially is an important step towards recognizing the benefits your coverage provides you.

Almost every state has state-required minimums for insurance coverage, meaning that you will have to purchase at least a specific amount of coverage.

However, there are some other coverage options available to you, as well as much higher limits of protection for certain coverage options. If you are interested in learning more about the coverage options available to you, speak to your insurance provider to find out more.

Choosing to purchase only the minimum amounts of coverage may result in a lack of financial protection following an accident. Some individuals may choose this route when they believe that their coverage is a waste of their time or money.

Purchasing only liability coverage may leave you unprotected in the event of a bodily injury to your passengers or physical damage to your vehicle.

Conclusion

You may feel that your car insurance is a waste of your hard-earned money. It’s important to remember that your insurance coverage is protection for the losses you cannot anticipate.

When trying to decide just how valuable your insurance coverage is, make sure to review your policy coverage to determine what is covered, what is not covered, and any potential changes you could make to maximize your protection for each dollar you spend.

You can also speak to your current insurance provider to learn more about your policy coverage, your available options or limits, and what you can do to increase your policy’s value.

If you feel that your current coverage is insufficient, or you aren’t getting enough value for your dollar, look at other insurance providers to see what they can do.

Each insurance company quotes and writes policies based on different factors, meaning one policy may offer you options that another will not. You may be able to find a more affordable policy or a policy that offers more coverage through a different carrier.

Compare different carriers’ rates today! Enter your zip code in our free quote tool below.

Free Auto Insurance Comparison

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