Whether you’re driving a brand new Lexus, a five-year-old Honda, or the truly ancient Volkswagen Rabbit you’ve had since college, auto insurance is critical. Not only do most states require at least minimum liability in order for you to drive legally at all, but if you should get into an accident without insurance, you wouldn’t be able to replace it.

When you are purchasing a brand new car, or renewing the coverage on a car you’ve only had for a year or so, your coverage choices are made for you, for the most part, because your finance company will require total protection. When you have an older car, however, there’s a temptation to reduce your coverage. After all, you don’t comprehensive coverage on a car that costs less to replace than you pay in premiums…do you? Still, there are a few things you should consider before stripping your insurance policy down to the legally-required minimums.

Filed under: Insurance