When money’s tight and after an unconventional year during a global pandemic, it can be tempting to cancel insurance coverage. For many people, the question of whether or not they really need car insurance is at the top of their minds as they weigh financial decisions in 2021. If you’re not sure whether or not you need car insurance anymore, read on.
Low Use Coverage
Maybe the pandemic has meant you now work remotely or that you drive much less than you once did. Even if you don’t use your motor vehicle very often, the honest answer is that you should still keep it insured. College students who’ve returned home for online schooling are asking things like whether or not they should maintain coverage too.
You may find yourself asking, do I have to insure my car if I am not driving it? Is coverage necessary if I’m not working and never lead the house? These are common questions right now when it comes to car insurance coverage. Unless you plan to give up your vehicle or don’t plan to use your driver’s license at all, the truth is you’ll still need at least minimal coverage.
Car insurance protects drivers from vehicle damage, bodily injury, and more. Types of insurance range from collision coverage to liability insurance. All are important in protecting yourself from financial damages should something go wrong on the road. While it may feel expensive to carry coverage now, it will only get worse should you get in an accident and find yourself uninsured. It’s a good idea to consider your options now before making a decision on what to do with your current coverage or letting it lapse.
Proof of Insurance and the Law
In the United States, it’s illegal to operate a motor vehicle in most states without a proper auto insurance policy. With a few exceptions, you’d be taking a big risk by being on the road in your own or someone else’s car without insurance coverage. If you’re considering canceling coverage or going uninsured, be sure to find out the laws in your state or country. The same way you’d research how to be a successful entrepreneur, you’ll want to do your homework now to be sure you’re making a decision you feel comfortable with. Not knowing is not an excuse for breaking the law, so be sure to contact your auto insurance company or the state department of motor vehicles to make your choice.
Insurance Options
Like paint swatches, insurances may look the same. The reality is that one liability insurance coverage is not identical to the next. Like hues of paint, policies fluctuate and what could be considered full coverage with one company will not look the same at the next. If you’re concerned about your monthly payments and are thinking about shopping around for cheaper insurance, weigh those options.
That is, compare what one company will cover compared to another. Ask about discounts for things like good driving records or low miles. Doing this could help you keep car insurance even in tough times.
At the end of the day, whether you’re driving less or not, and no matter how tight money is, it’s risky to be an uninsured motorist. For this reason, if you’re struggling with paying for your insurance, a good first step is to contact your current insurance company and ask about options. Reducing y our coverage or going for a higher deductible to keep payments down is probably a better option than becoming a high-risk driver. While a car insurance refund might seem like the answer now, your future financial security could just depend on your ability to stick tough financial times out.
