When you think about auto insurance, what emotion does that thought inspire? Does it make you frustrated? Tired? Does it even make you sad that you spend all that money on “maybe”? Auto insurance is certainly not a “fun” purchase. But it is absolutely a necessary one. Not only does the law require you to have current auto insurance in order to legally operate your vehicle, this kind of insurance protects you from potential financial ruin in the wake of an accident.

Each state requires motorists to purchase certain minimum auto insurance coverage levels. Some states have low minimums, while other states have relatively high minimum coverage requirements. No matter where you live, you should think twice before only purchasing the minimum coverage levels required by law. Even though higher levels of coverage may not be where you want to spend your money, this may be money truly well spent.

In general, basic collision coverage only covers the amount required to fix or compensate you for the damage done to your vehicle in the event of a motor vehicle accident. However, you are likely aware that many other expenses could result from an accident and that events beyond collisions could leave your car damaged. For example, your car may be damaged if it is stolen, vandalized, exposed to fire or if rocks, tree branches and other objects fall on it.

Additionally, you may have medical expenses which result from car collisions that will likely not be covered by a minimum plan. These and other potential expenses could send your finances into a tailspin instantly in the event of an accident. Buying more than minimum coverage may be frustrating, but it may be one of the best decisions you ever make.

Source: FindLaw Injured, “Why Should I Have More Than Minimum Insurance Coverage?” Christopher Coble, May 5, 2015