Saturday, 19 December 2009

Why should you get something above the minimum insurance?

In my proud little state the state government has imposed a minimum requirement in the car insurance policies needed by a citizen. This minimum on car insurance policy dictates a floor standard in the coverage plans purchased by those who need car insurance. Based on my experiences getting the minimum state requirement for car insurance has its own advantages and disadvantages. Honestly, I never opted to but the minimum requirement as long as I can afford getting better one simply because minimum required car insurance translates to minimum benefits. I know that many would agree with me on the claim that getting better car insurance is more beneficial than getting the minimum required car insurance.

There are different car insurance requirement in every state. The imposition of a minimum requirement is highly dependent on the local state government. In their decision making process on the minimum insurance requirement the government with the help of the car insurance companies assess the risks that we can encounter while driving in our state.

In my years of being insured, I came to an understanding that there is only one benefit from a minimum insurance requirement, it is a lot cheaper than the regular car insurance policies. The price of the required minimum insurance is cheap because it is bargained by many insurance companies.

Car insurance comparison appears to not be working in minimum required policies since they are all the same. But policy shoppers just like me should always be vigilant enough in knowing and weighing the disadvantages and advantages of just getting the minimum. Contrasting the single benefit of getting the minimum required car insurance in the state, disadvantages as I judge them seem to be overshooting the single benefit.

Taking actual accounts from my friends and neighbors there are two main reasons why should we get insurance above the minimum requirement- coverage and claim. In accident we cannot account for everything, getting a minimum required insurance will limit your claimable coverage no matter how grave the accident is. Opting to get a minimum required policy will also make it difficult to file claims because of the limited investigations authorities can make due to the limited coverage access of the car insurance policy. Since then, I always remember that not everything cheaper is better because we can be giving up something important just to save a couple of bucks. 

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