If you own a car and you drive it around on the roads in daily life as well, then there is no doubt you’ve already realized how important it is to have decent car insurance. Car insurance is absolutely necessary. In case you have an accident, you will be covered and you won’t be bankrupted by the high repair costs that are going to be involved with car damage, either to your car or somebody else’s.
Also, when a cop pulls you over because you (accidentally) violated a traffic rule, he’s going to check your license, registration and your insurance. If the car is not insured, you can have your registration penalized right on the spot. Your car might even be confiscated by the transport authority. Then it is up to you to prove that your car has plenty of insurance in order to have your registration’s validity restored. And this comes with the necessary fines and fees.
Securing Cheap Car Insurance – Here’s How To Do It
Make sure you’ve got your insurance papers in order. If you don’t want to have to pay too much for it, there is always the option of looking for a super cheap car insurance plan that won’t cost you too much. The cheapest auto insurance that money can buy is the so called 20/40/10 fundamental liability policy.
The 20 refers to the amount of $20,000. This is the maximum amount that will be paid per person to cover any medical bills after injury due to a car accident caused by you. The 40 refers to $40,000, the maximum amount of money that will be paid to cover the medical bills of other people involved in a car accident caused by you. The 10 refers to $10,000, which is the maximum amount that will be paid to you for the restoration of the other person’s damaged car.
Please keep in mind that you, yourself, do not have any medical or property coverage at all with this type of policy. The 20/40/10 policy covers other people’s medical bills and other people’s property bills. You will still have to pay your own medical bills and also the bill for the repair of your own car. We can only hope that the healthcare reform of 2010 will bring down the medical bills. But car repair bills… that is something you can do something about yourself. I you don’t want high repair bills, drive a cheap old used car that doesn’t cost more than $2000. This makes it easier to cut your losses and move on than when you would have been driving a $10,000 car!