Drivers have been seeing a drastic rise in auto insurance premiums since the COVID-19 pandemic.
In fact, the rising rate of auto insurance, nationally, is far higher than both health and homeowners insurance.
So a growing number of drivers are choosing to go with state minimum, liability-only insurance, to be on the road.
If you're in a financial bind, it's a lot cheaper than full coverage.
But one woman learned that if you are involved in a crash or if your car is stolen, you could be out thousands of dollars.
Car stolen, no coverage
Bernice Evans says thieves broke into her ground-floor apartment and stole her car keys while she slept one recent night.
"They come over here and take both of my car keys," she said, pointing to a table by her door. "They went out my door and stole my vehicle."
When she woke up, the Ford Escape she depended on for her essential transportation was gone.
Worse, she says, when police finally found it, they had some bad news for her.
"It's totaled," she said.
Then came a second blow: Her insurance company said she didn't have coverage for theft.
"I had liability because I couldn't afford full coverage," she said. "Just liability."
Insurance expert Divya Sangameshwar of ValuePenguin says liability-only coverage can be very risky.
"Liability insurance is literally one step above being uninsured," she said.
If you cause a crash, she says insurance only covers the other driver, not you.
And in the event of theft, a tree falling on your roof, or a collision with a deer, nothing is covered, as you don't have what's called "comprehensive" coverage.
Some things you can do
Instead of liability-only insurance, she says compare at least three quotes for full coverage insurance.
"We did the math and found that there is an average $1,300 price difference between insurance companies offering a similar policy for the same driver in the same car," Sangameshwar said.
She says also ask about discounts such as bundling, usage-based discounts, and discounts for teachers or first responders.
Or you can opt for a higher deductible, which will lower your rates.
A higher deductible, she says, "might mean paying a little bit more out of pocket for repairs, but it's not as risky as switching to a liability-only policy."
Finally, ask about the cost of comprehensive insurance, which covers natural disasters or theft.
Bernice Evans, in the meantime, now has to rely on family for rides.
"I can't get to the grocery store," she said. "Can't get to my doctor appointments."
She's hoping to scrap together a few thousand dollars to buy a new car.
And she now wants people to know the downside of minimal insurance, so you don't waste your money.
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