Why do people only buy minimum car insurance coverage?

Many people only buy minimum car insurance coverage to save money. There is also a common misconception that not being at-fault in an accident means the driver has no financial responsibility. Many times a driver will leave the scene of an accident, or simply not realize they damaged another vehicle. But buying more than the minimum auto insurance coverage will protect you in accidents, collisions, hit-and-runs, and more. Find better coverage with affordable rates with our free comparison tool below.

Compare Cheap Car Insurance Quotes

 Secured with SHA-256 Encryption

Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

Full Bio →

Written by

Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

Full Bio →

Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 31, 2020

Advertiser Disclosure

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

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare cheap car insurance 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.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

Auto insurance is one of the most important investments a person can make. Surprisingly, many drivers choose to purchase minimum coverage amounts that potentially leave them vulnerable to unnecessary financial loss.

Check cheaper car insurance rates so that you protect yourself from the unexpected financial loss. Accidents happen, and having adequate insurance is essential for drivers to protect their assets and savings. Find a FREE car insurance quote comparison  by entering in your ZIP code!

Common Reasons For Choosing Minimum Insurance

  • Purchasers choose plans that seem affordable, without understanding coverage limits
  • Not shopping around to find the best deal with higher limits
  • Belief in the idea that a good driving record means there won’t be an accident in the future
  • Misconceptions regarding drivers rights and liability in an accident
  • Belief that minimum coverage will be enough for all situations
  • Drivers that think higher insurance limits are simply too expensive
  • Driving a cheaper car doesn’t require having higher levels of coverage
  • Misunderstanding state requirements regarding minimum policy levels

All the misconceptions listed above can be dangerous and costly to believe. Simply put, all drivers are at risk of being in an accident and the expenses created can require much more than minimal insurance offers. By being knowledgeable and shopping around for the best car insurance quotes, drivers can be prepared for the unexpected. Motorists should be confident they are covered by an extensive policy that won’t leave them exposed to expensive lawsuits.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Compare Premiums With Coverage Limits

Many drivers would be surprised to find that the most expensive plans don’t always offer the best coverage. Some less expensive plans may actually have higher limits. Since each company has different equations for determining an individual’s rates, it’s important to get quotes from multiple companies. After getting these quotes, It’s important for drivers to find which plan offers the most coverage at the best price.

Not Having an Accident Doesn’t Mean it Won’t Happen

The very definition of the word accident, alludes to the fact that drivers usually can’t predict them. Being a safe driver with a clean history is great, and can save a person money with their policy.

However, not having been in an accident is no excuse for having the minimum amount of car insurance coverage. Drivers should always be prepared for the unexpected, not just by being a safe driver, but having enough insurance to cover an accident.

Understand Each Aspect of Coverage

There are multiple areas and amounts of coverage a driver can choose from. Having a lower limit on collision, is a lot different than having the minimum amount of liability or medical coverage. Driving a less expensive vehicle may warrant having lower amounts of collision limits to repair a personal vehicle, but damage done to others can’t be predicted.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Fault May Not be Important

One of the most common misconceptions is that not being at fault in an accident means the driver has no financial responsibility.

While this may be true, all too often it is not. Many times a driver will leave the seen of an accident, or simply not realize they damaged another vehicle. Some may not even have insurance at all.

These reasons make it important to shop around and find coverage that will pay for all these possibilities. Everyday, motorists are stuck paying to repair damage they did not cause. Only adequate insurance limits can prevent drivers from paying these bills in full.


Higher Coverage Limits Aren’t Too Expensive

Like any investment, it’s important to shop around to find the best deal. Unfortunately, many motorists treat purchasing insurance like an afterthought. As mentioned before, each insurer has different criteria that determine rates they offer. One person may pay significantly more than another for the same policy.

Try looking at major insurance companies online, and possibly local options as well.

The more quotes received, the better the chance of getting a low premium, with optimum levels of coverage. Remember, paying a little more now, could result in saving a lot of money later.

Consider All Aspects of Coverage

While liability, collision and medical coverage are extremely important, other issues must be addressed as well. Accidents can happen when driving a rental vehicle, another person’s car or be caused by another motorist without adequate coverage.

Again, individuals can be at risk even when they aren’t driving or at fault. Most insurance providers offer solutions for these situations. Look for coverage in these areas when choosing a policy, and compare the costs associated with such insurance between multiple policies.

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption

Understand State Laws and Regulations

Each state has different rules that regulate car insurance policies. Drivers should be aware of what these rules and regulations consist of. Usually, the state will require a minimum amount of insurance for liability, personal injury and medical coverage. It is imperative that customers know these amounts, and use them as guidelines when shopping for insurance.

Most providers, especially those online will automatically know state limits. By comparing what each company has to offer, it will be possible to get coverage for much more than the minimum required. Minimum requirements are often far lower than the true cost of an accident. Check the comparisons by using our FREE car insurance search tool!

Take Away Points

  • Minimum auto insurance levels are often too low to cover the full cost of an accident
  • Being accident free doesn’t preclude the possibility of having one in the future
  • There are many types of coverage that must be considered
  • Policies can vary greatly in cost for similar amounts of coverage
  • Not being at fault in an accident doesn’t mean a driver won’t incur expenses
  • By shopping around online it is easier than ever to find an affordable policy with adequate policy limits

Having more insurance than required is far better than having minimum amounts that may not be enough to cover an accident. With many insurance companies offering easy online applications for quotes, there is no reason a person can’t find a great policy at an affordable rate. Use our FREE car insurance search tool by entering in your ZIP code!

Compare Cheap Car Insurance Quotes

Compare quotes from the top car insurance companies and save

 Secured with SHA-256 Encryption