By Greg Haehl
When you are looking for car insurance you basically have two different types of insurance to choose from (although there are many variations). You can choose to buy either full-coverage or you can choose to purchase a less-expensive but higher risk minimum liability insurance.
If you are trying to save money you may decide upon the affordable high risk limited liability car insurance.
Each state sets its own minimum limits on the amount of liability insurance that its drivers must purchase, so the amounts in the following example of a basic liability policy may not apply to your state.
Liability insurance is always expressed as 3 numbers in the form of: 10/20/10. In this example the first “10” means that the insurance will pay a maximum of $10,000 in medical payments to any one individual injured by your vehicle. The “20” refers to the fact that the insurance pays a maximum of $20,000 in medical payments for any one accident regardless of the number of people involved, and the final “10” means that the insurance will pay a maximum of $10,000 in property damage for any one accident. Property damage includes, but is not necessarily limited to, the repair or replacement of the other person’s car.
What makes this type of insurance high risk is the fact that the amount of coverage is rather low, making it a distinct possibility that your basic liability coverage may not fully pay for all of the medical bills or the property damage caused by an accident. If that should be the case you may be held personally responsible for paying the difference out of your own pocket or purse. This could mean the depletion of your savings or even the forced sale of your home.
The other thing which makes a basic liability policy high risk is the fact that liability insurance pays nothing whatsoever toward the repair of your vehicle after an accident and it also does not pay for your medical bills or for the medical expenses of anyone riding in your vehicle.
It is possible to buy liability insurance with limits higher than the minimum amount required by your state – but the cost will be higher. You could also buy full coverage insurance, which includes collision, comprehensive and personal injury protection insurance in addition to liability insurance. Often a full coverage package also includes uninsured motorist protection. Again, the cost for a full coverage policy is higher than it is for a basic minimum liability policy.
The best place to find truly affordable high risk car insurance is online. You’ve probably seen the sites that allow you to compare the cost of car insurance from a number of different companies. The trick is to find at least 3 of these websites and fill out the form on all 3 of them, not just one site. In this way you will see the prices from many more companies and you have a better chance of finding the truly lowest possible price.
Also remember to answer the questions on all 3 sites the same way so that you are comparing the same policy on all three sites.
The final step is to compare all of the prices you have gotten and simply choose the lowest price you’ve found. That’s it! You’re done!
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Affordable High Risk Car Insurance
The Cheapest High Risk Car Insurance Policy