auto insurance coverage

Auto insurance. Most states require it. Most everyone has it.

It’s preparedness for the (hopefully unlikely) possibility that you get into a car accident. Accidents cost money. Sometimes LOTS of money.

So we pay a monthly (or annual) premium for auto insurance to insure us “just in case”.

There are many similarities analogous to preparedness we discuss here on the blog. It’s a form of security, protection.

Auto Insurance Premiums

The cost varies, often widely. There are some factors that determine the range of premiums which are out of your control. A big one is where you live.





Where You Live – Makes A Big Difference

Often we have little choice in how much it costs to insure a vehicle. Why? Because much of it depends on the region where you live. It’s logical.

The higher the population density, the more you’re going to pay for insurance. Common sense tell us that the odds of an automobile accident are higher when there are more people driving cars around you.

Right now I live out in the country, far away from any major population centers. My auto insurance is the cheapest I’ve ever paid compared to the places I used to live.

The analogy to preparedness… The more people around you, the higher your risks in general. You’re going to pay more because your risks are higher – meaning, you need more ‘coverage’.

Premiums Are Higher For Younger Drivers

Young people will pay lots more for their auto insurance than older, more experienced drivers in general. Again, it’s logical.

Inexperienced drivers are going to get into MORE accidents as a general rule. So, their auto insurance is going to cost MORE.

There’s not much that can be done about that. Experience does have its rewards. Takes time…

The analogy to preparedness… When you’re getting started, and for awhile, your acquisitions and learning skills are like driving up a steep hill. It can be challenging at first. Lots to do. But when you reach the plateau, things get easier. Less expensive. You can set your cruise control, or climb the next hill.

Auto Insurance Coverage Options

Lastly, your premium will also be determined by the coverage options you choose. There’s always a minimum set of coverage requirements determined by the state regulatory body where you live. And the minimum is what many or most people tend to choose. Who wants to pay more than necessary, right?

Well, some choose more options for more protection. It costs more. But your potential out-of-pocket expenses and personal liability is reduced when you have better coverage.

Making it simple. Auto insurance coverage is split into 3 general categories.

  1. Coverage that protects your car (of course)
  2. Medical protection for you and your passengers
  3. Coverage protecting your wallet (liability)

Collision & Comprehensive

Collision coverage covers your car for collisions (involving automobiles). Comprehensive coverage covers for things that are NOT a collision (tree falling on your car, fire, theft, etc..).

Medical & Personal Injury Protection

Regardless of whose fault, this coverage pays medical bills (within selected limits) for you and the passengers in your car.

Liability Coverage

This is extra protection for things like damaged property, bodily injury-related expenses, and uninsured motorist liability coverage.

The analogy to preparedness… Some coverage options are mandatory. You just ‘gotta’ have them. Other options are for extra protection (usually always a good idea if you can afford it!).





Auto Insurance Companies

Some auto insurance companies cost less (or more) than others. There are reasons for that. Some good, some not so good.

Again, most states regulate auto insurance companies to one extent or another. But it’s not always a guarantee that the ‘product’ is going to be good when you actually need it.

So do your research. Lots of information can be found online. Ask other people who they are using for insurance and if they’re happy with them.

Unfortunately most people won’t know for certain how good their insurance company is until it comes time to make a claim. This is why it’s important to find out what you can BEFORE an accident ever happens.

The analogy to preparedness… There are lots of companies selling product in the realm of preparedness. Look for longevity. Those who have been around for a long time. Check reviews. See which of them are advertising on sites. Ask others in the preparedness arena for their opinion. Research before you buy.

Continue reading: Best States To Live A Preparedness Lifestyle