The Pros and Cons of Basic Vehicle Insurance

There is no question that having a good insurance policy is a wonderful thing when you need it. The problem is, you never know when that will be. You might never make a claim in your whole life. Life is full of risk vs reward situations, and choosing your insurance is one of those situations where you need to make an educated guess about how much to spend. To save us all from our own sense of invulnerability, governments generally insist that everyone has some basic liability. From there the sky is the limit as to what you might want to pay. Many people choose basic insurance though. Here is a look at some of the advantages and disadvantages of basic insurance.

Cons:  The main argument against basic insurance is that if you get into a bad accident, you are going to be liable for a lot of the expenses that aren’t covered. But there is more to consider than just that.

  • Basic coverage will not cover damage to your car, so you will have to pay for the whole thing yourself or drive a damaged car and this might not be legal. You can check out basic insurance rates here,
  • You aren’t covered if you are hit by an uninsured motorist. Even if you are not at fault.
  • You won’t be covered for any loss or damage that occurs while the vehicle is not in operation.
  • You won’t becovered forinjuries sustained by you or your passengers in the event of an accident.
  • If you owe money on your car, you will still need to make payments.

Pros: The main argument in favour of basic insurance is that you do not have to put up a lot of money to drive legally.  But there are other reasons to go with the basic option too.

  • Having a basic policy is good protection in the case of a lawsuit. It is better than no coverage at least.
  • You may not be driving a valuable vehicle. If your vehicle is older and not desirable, chances are that it would be cheaper for you to take the risk of a collision and just purchase a replacement vehicle in the case of an accident.
  • If you are short of money and you still need to drive, having basic coverage will enable you to legally drive.

Everybody has a different situation. If you have nice cars and plenty of money, then this isn’t going to be a difficult decision for you. But for many people it is a hard choice. Nobody knows when an accident might happen. Even if you are an excellent driver, you aren’t completely protected from bad or dangerous drivers. Also, if you can’t afford to replace your vehicle, you will be better off paying a little more every year so that you don’t lose your investment all at once. Insurance can be a gamble and if you don’t like taking chances then the choice is obvious, but for many of us, we appreciate that we still have a right to make a choice.