Life is full of financial requirements once you become an adult. You have food and shelter requirements to start with, and then there is the matter of transportation costs. Whether you live in a big city, a small town, or a rural area, you need a way to get from Point A to Point B.

If your choice is to have a car, then you’ll need insurance, and like most people, you’ll want the cheapest auto insurance possible. But as they say, you get what you pay for. So, you need to make sure you’re getting ample coverage.

The first question you have is probably, “What coverage is needed?” There are many different answers to that question. The short answer is, “Ask your insurance agent.” They will know more about you and the area you live in, making them the more logical person to ask. There are many factors to be considered such as where you live, what your financial situation is, and the level of risk on the roadway for you.

The Required Coverage

There are minimum liability limits required by most states today, but the minimum may not be right for you. Why? Well, liability coverage for cheap car insurance or well-known brand insurance only pays the claim from other parties when an accident is your fault. Meaning, your car won’t be covered, aka, won’t be fixed.

Therefore, full coverage, which includes that liability in addition to comprehensive and collision, is recommended by most insurance companies, especially if you’re driving in high-risk areas like a big city. If you are leasing or making payments on your car, the lender or lease company will most likely require you have full coverage.

Your Personal Choice

While auto insurance is a must, there is nothing that says you can’t shop around for the cheapest auto insurance you can find. However, for your own benefit, always get the best coverage possible. Simply because it is cheap, doesn’t mean it’s good for you.