A word on auto insurance

If inflation for food, energy, and medicines were bad, mundane things like auto insurance prices are expected to go up by 8.4% this year. The average cost per vehicle will go up to $1,780 a year. Source: ABC News Having good credit and no accidents for the past 5 years will help reduce your auto insurance rates.

Basic auto insurance covers two forms of liability: personal injury and property damage. This is the amount of coverage you provide if you cause injury or damage to someone else. These are commonly called bodily injury, and property damage.

Full coverage auto insurance includes liability insurance, collision, and comprehensive. Collision will cover fixes to your car, regardless of accident fault. Comprehensive will cover you for non-collision incidents that cause vehicle damage.

Full coverage can include uninsured / underinsured motorist (if the other person doesn’t have any auto insurance, or doesn’t have enough), roadside assistance, gap insurance (your car loan is worth more than the car, gap insurance covers the difference), and rental coverage. Rental coverage would have made our recent accident less stressful.

How much coverage do you need? You want to maximize protection and minimize cost. Not an easy feat. Shop around, go to insurance brokers, have them run quotes for you. Most major companies give discounts for bundling auto insurance and home insurance together.

Do I need “full coverage” car insurance?

It depends. You may want to consider “full coverage” if:

  • You’re financing a car. Lenders typically require “full coverage” in addition to other coverages required by the state.
  • You want financial protection. Without “full coverage,” you may be required to pay out-of-pocket to replace your vehicle after a total loss or theft.
  • You want peace of mind. Having “full coverage” protects you against a wide range of scenarios that could put you at financial risk.
Liberty Mutual

Sincerely yours,


(8 days in a row, a new record for us)

Copyright © 2023 smilingdad. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of smilingdad, its owners, sponsors, affiliates, or subsidiaries.

Published by smilingdad

My story is one of tragedy and redemption. We've made many mistakes along the way regarding our money. Our goal here is to show you how to take care of your money life long, and as much as we can, help the Earth along the way. I call it sustainable personal finance and ethical capitalism. Currently, I am a part time writer for Cleantechnica and part-time licensed financial professional, along with being a full-time dad.

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