If you’re responsible for carrying your car insurance, you may have wondered at some point, “Why would anyone choose state minimum insurance?” On paper, more coverage is helpful and will aid you in a variety of situations should something go wrong while you’re driving, but still, people choose state minimum coverage. Let’s review why consumers may select state minimum car insurance.
The Insurance for the Rest of Us
At SafeAuto, we’re a leading provider of state minimum insurance. Since 1993, SafeAuto began as the car insurance carrier that gave more consumers access to the coverage they needed that complies with the law, at a price they could afford. In other words, we’ve been dedicated to providing car insurance for the rest of us.
As we know, for many people, getting the right car insurance that doesn’t break the bank can be an obstacle. That’s where state minimum, our specialty, comes in.
Here are some of the most common reasons why drivers decide to purchase state minimum policies.
Reason 1: Working Month-to-Month Jobs
What do retail stores, Halloween businesses, and farmers all have in common? Many of their employees work month-to-month because their jobs are seasonal. While the connection between month-to-month work and a person’s car insurance isn’t immediately obvious, it makes sense.
Many people across the US spend most of their time outside the home working. If you only need to go to a from work for a season, you may not need insurance on your vehicle year-round. Often, large insurance companies will lock you into a contract or have you pay exorbitant fees to end your coverage early.
At SafeAuto, we let you come and go as you please. That’s one of the reasons why our state minimum is a popular option for those who don’t spend as much time on the road as others.
Reason 2: Old Cars and Lack of Assets
Many of our customers rely on older cars to get them to and from places. For these drivers, cheap state minimum car insurance can seem like a smart choice. Let’s break down why.
Some people choose state minimum because, quite simply, the cost is too expensive for their budgets. Additionally, if you drive an older car and get into an accident, you may decide not to have it fixed because the cost to repair it will outweigh the vehicle’s worth. If it’s still in working, safe driving condition, it needs to be insured as you continue to drive. That’s where state minimum comes in again.
Reason 3: Poor Driving Record
Everybody gets into accidents. Bad things happen sometimes, but it doesn’t change the fact that an accident can impact a person’s driving record significantly, which directly plays into their insurance rates (along with other factors). The reason being, insurance companies look at driving records as an indicator of how much risk each driver carries. All insurance carriers aim to balance that risk with the premium customers pay, which will then be used to pay out claims should an insured get into an accident.
Drivers who carry more risk get higher rates because they’re more likely to get into an accident and need an insurance carrier who understands that. Some insurance companies won’t even offer them coverage. But these drivers still need to get to work, go to the grocery store, and do so many things to take care of their families that require the ability to drive their car. Because of this, many drivers are left with few choices, wondering to themselves, “Can you drive without car insurance?” For these drivers, it’s important to know that there’s state minimum coverage to help you stay legal on the road at a price that won’t break the bank.
The Bottom Line.
If you’ve ever experienced being car-less in a world where vehicles are the main mode of transportation, you know how difficult it can be. For all of the drivers out there that need a different car insurance option, there’s SafeAuto, the insurance for the rest of us.