From Fred J Henzel

Insurance for your vehicle is truly important. It is a requirement almost everywhere to have a least a set minimum coverage amount. You can seek out cheap auto insurance to cover the minimum and compare rates to find the best deal on any policy.

The liability portion of the policy will protect your assets if you have an accident and damage someone else’s vehicle or if they sustain an injury. You should assess what you need for this portion of the policy, as it needs to protect what you own if you get sued. Carry a reasonable amount that makes sense, because you can come out on the short end if this coverage is not enough to pay off.

The comprehensive portion of the insurance should cover your needs if the car is stolen. You will want to be sure that the true replacement value is covered either by a stated amount in the policy, which is great for a collector or specialty vehicle, or by the true cost to replace it. If it is stolen and a settlement is offered some companies will offer a replacement vehicle of equal value instead of the money. If the car has a lien on it they will pay the car value towards the loan but if the amount of the loan is not able to be repaid by insurance then you are considered “upside down” in the car loan. This means you are responsible for the difference.

For this reason some car buyers will purchase “Gap Insurance” to cover the gap in value between what the car is worth and the amount remaining on a loan. The collision portion of auto insurance pays to repair the car if it is wrecked. If considered to be a total loss, the same situation applies if there is a loan on it, as mentioned above. Shop for cheap auto insurance, save money and get the coverage you need.