‘I can’t go to the supermarket’

Drivers have seen a drastic increase in auto insurance premiums since the COVID-19 pandemic.

In fact, the rising rate of auto insurance nationally far exceeds that of both health and homeowners insurance.

A growing number of drivers are therefore choosing to take out minimum state liability insurance to be on the road.

If you’re in financial trouble, this is a lot cheaper than full coverage.

But one woman learned that if you are in an accident or have your car stolen, you could lose out on thousands of dollars.

Car stolen, no coverage

Bernice Evans says thieves broke into her ground-floor apartment and stole her car keys while she slept last night.

“They’re coming here and taking both my car keys,” she said, pointing to a table near her door. “They went out my door and stole my car.”

When she woke up, the Ford Escape she depended on for her essential transportation was gone.

Worse still, she says, when police finally found it, they had bad news for her.

“It adds up,” she said.

Then came a second blow: Her insurance company said she had no theft coverage.

“I was liable because I couldn’t afford full coverage,” she said. “Just liability.”

WCPO

Insurance expert Divya Sangameshwar from ValuePenguin says liability coverage alone can be very risky.

“Liability insurance is literally a step up from being uninsured,” she said.

If you cause an accident, she says insurance only covers the other driver, not you.

And in the event of theft, a tree falling on your roof, or a collision with a deer, nothing is covered because you do not have so-called “comprehensive” coverage.

Some things you can do

Instead of liability-only insurance, she says, compare at least three quotes for full coverage insurance.

“We did the calculations and found that there is an average $1,300 price difference between insurance companies offering a similar policy for the same driver in the same car,” Sangameshwar said.

She says she also asks about discounts such as bundling, usage-based discounts, and teacher or first responder discounts.

Or you can opt for a higher deductible, which will lower your rates.

A higher deductible, she says, “may mean paying a little more out of pocket for repairs, but it’s not as risky as switching to a liability-only policy.”

Finally, ask about the cost of comprehensive insurance, which covers natural disasters or theft.

Bernice Evans, meanwhile, depends on family for rides.

“I can’t go to the grocery store,” she said. “I can’t make it to my doctor’s appointments.”

She hopes to scrape together a few thousand dollars to buy a new car.

And she now wants people to know the downside of minimum insurance so you don’t waste your money.

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