If you have enough money in your bank account, you can skip paying for car insurance. Depending on your financial situation, this amount can range anywhere from $10,000 to $100,000. If you do not have this amount, you should consider getting a bond or deposit instead. Driving without coverage can lead to sky-high bills and ruining your finances. In addition to the cost of car insurance, you could also save that money for your retirement or for your children’s college.
Some states, like New Hampshire and Virginia, don’t require car insurance. Those who don’t have insurance can pay a $500 state fee in lieu of paying insurance premiums, but they still have to pay for damages and bodily injury caused by other drivers. Likewise, if you get into an accident and can’t pay for damages, you could lose your license. You should also consider an emergency fund.
If you don’t have enough money for car insurance, consider bumping up your liability coverage. Increasing your liability coverage will cost you around $100 more per month. You could also consider getting an umbrella liability policy. This coverage will cover you up to $1 million. This is a good idea if you have an expensive home or have diligently saved up money. This kind of insurance is a good idea if you want to protect your assets and the people in them.
Liability insurance is essential to cover damages caused by an accident. Without it, you will be unable to pay for damages caused to other people or their property. Liability insurance covers any damages that the other driver may cause. The minimum coverage that states require is often much lower than necessary. In some cases, liability coverage is a legal requirement, but it may not be the best option. It’s better to have some coverage than to be left without any.