When most of us go car shopping we tend to get caught up in the fun and excitement, that is until we hear how much that sticker price is. Unfortunately, that’s not the last financial obligation you should consider, since car insurance is an absolute necessity as well. Depending on how many driving infractions, accidents, and points you have on your record, car insurance can be quite costly each month. In fact, prior to turning 25 years of age, my auto insurance was equivalent to my monthly lease payment on my car at the time.
I live in the state of Michigan and we are actually required to have insurance in order to legally drive. Though if you lease or purchase a new car with a loan, then you are actually required to have full coverage insurance in order to cover the potential liability of an accident. Regardless, if you weren’t required to carry insurance, there are plenty of benefits that justify it anyways. You can drive your car with peace of mind. Whether or not you crash into someone, someone crashes into you, a random fire or flood destroys your car, you know that you will receive a check covering you for the full amount. Also, car insurance often allows extras like rental insurance and secondary medical insurance if you do get into an accident.
My continuous annoyance with car insurance is that the rates mysteriously fluctuate and change every time I renew my policy. I simply don’t have the time to call 10 different companies and price check their services. What’s even worse is that they want every piece of information from you, and then if you decide to go with someone else they will never stop calling you. I am still receiving phone calls from companies that I got basic quotes from over 5 years ago. That’s why I’m a fan of auto insurance comparison sites out there. It already works great for airfare and hotels, so why not car insurance?