Drivers often think a cheap car insurance policy is enough, but coverage can fall far short of what is needed if a serious crash happens. When a vehicle is stored, driven infrequently, or replaced with a less expensive one, it may make sense to reduce certain parts of coverage, especially liability-only protection, according to a finance professor at City University of New York’s Queens College.
When a driver becomes a financier.
Still, if a car is worth roughly $40,000, this strategy can backfire badly. A liability-only policy may not adequately protect against a major accident involving several motorists, severe vehicle damage, and expensive bodily injuries.
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