When purchasing a personal auto insurance policy, you might be tempted to purchase the least amount of auto insurance required in your state, thinking that to purchase less insurance will save you money. This, however, is a mistake many drivers come to regret once involved in an accident, natural disaster, or after becoming the victim of an act of vandalism.

Purchasing Inadequate Car Insurance

Purchasing less insurance might save you money in the short run, but in the long run it could end up costing you more than the initial savings are worth.

For instance, if you are involved in an accident in which another person is severely injured, or that person’s property is severely damaged, not carrying enough liability insurance could result in your having to pay tremendous out-of-pocket expenses. For this reason, it is wise to purchase more liability insurance than the minimum required, as the function of liability insurance is to protect you – the policyholder – from being sued for medical and repair expenses.

You might also want to purchase more personal injury protection (PIP) than the minimum required, as the function of PIP to cover the cost of your own repairs and medical expenses.

Shopping for Auto Insurance: Smarter Ways to Save

Fortunately, there are many other ways to save money on car insurance without having to skimp on coverage.

You can begin by purchasing a vehicle your auto insurance company considers safe, such as a modest four-door vehicle versus a sports car. From there, you can work to establish yourself as a safe and reliable driver over time.

Another way to save in the long run is to choose a slightly higher deductible, resulting in a lower premium. A deductible is what you’re willing to pay out-of-pocket, in the case of an accident, while a premium refers to the annual cost of maintaining the insurance policy.

Find Online Car Insurance Quotes

You can compare car insurance rates online, or by contacting the Insurance Department in your state. When speaking with an insurance representative, ask about the options for purchasing more liability and PIP insurance than the minimum required.