Most states require a mandatory minimum of liability insurance if youre a licensed driver with a car.
But if youre financing or leasing one, the lender may also make you carry collision and comprehensive coverage.
Theyre part of whats calledfull-coverage car insurance.
Collision and comprehensive coverages aren’t the only components of a car insurance policy you may be able to drop. Here’s a fulllist of car insurance coverages that may not be worth the money.
Unfortunately, collision and comprehensive coverage also make car insurance premiums much more expensive.
But is that the best move?
What Are Collision and Comprehensive Coverage, and Why Are They Important?
Collision and comprehensive coverage are part of a full-coverage policy.
They cover damage to your vehicle, regardless of fault.
7 Ways to Make Money if You Hate People
Do you avoid people too?
Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
Why are these policies important?
State minimum liability insurance only applies if you cause an accident.
And it only pays for damage toothervehicles and injuries tootherdrivers and passengers.
It does not cover you and your own vehicle.
Collision and comprehensive policies are fantastic in the event your vehicle is damaged.
However, they also drive up the cost of your monthly car insurance premium.
So its possible youre wondering if it’s possible for you to drop them altogether.
It depends (and usually you shouldnt).
Did you know?
In some states,credit scorescan also impact your insurance rates.
He covers banks, loans, insurance and taxes for The Penny Hoarder.
Find his work on sites such as USA Today, Business Insider and Forbes.
It sounds appealing right?
Check it out here!
