Car Insurance. Optional Legal Expense Cover Is Well Worth The Extra.
I get a lot of questions about my car insurance policy. I always state that I don't need it because accidents are not a common occurrence for me, but my friends and coworkers always have the same question. "What if you were ever in an accident?" Car insurance is only optional in the event something goes wrong, which is why you should never pay for it. The best way to avoid paying out of pocket for legal expenses that are not necessary and exercise your rights as a customer is by purchasing optional legal expense cover from your insurance company. I use it every year because it gives me peace of mind.
I have never had an accident, and I don't expect that to change anytime soon. However, if something were to happen to my car or myself, I would want a lawyer for when the insurance company denied their responsibility and left me high and dry. The thing is, this is an unnecessary expense for most people. If you are in a similar situation as me and just want peace of mind knowing that you won't be left out of pocket if anything happens, then purchasing legal expenses cover is worth the extra money that you pay in premiums. Hopefully, you will never need it, and you can save the money for the next rainy day.
If you do not use your car for work purposes and don't have a lot of disposable income you don't really need car insurance. It is a good rule of thumb to put any savings that you have into buying some sort of legal expenses cover to protect yourself from any unexpected mishaps that may occur. I save all my extra money into a savings account and let the interest replenish my cash reserves after putting a small amount toward my rent or mortgage.
I make enough money with my writing to be able to pay every single monthly bill with no problems at all. It may seem like I don't have a lot of expenses because I don't need a car to get around, but I still have to pay for my apartment, utilities, insurance and food. I could just live off the bare minimum and not put anything toward savings or investments, but that is not the way to build wealth in the long term. It can be hard to start putting extra money away when you are used to paying for day-to-day expenses out of your own pocket without any assistance from an employer. Over time, you can start using every extra dollar for investing or building up a savings account instead.
For a long time, I used savings from my 401k and IRA to pay for my car insurance. The only reason I didn't is because it was too much money for the company to cover. It is only a small percentage, but it still has to be paid out of pocket every month whether I have an accident or not. The insurance company does offer optional legal expenses cover which you can purchase at any time, but it can be very difficult to find the right coverage at the right price.
You might also think that the legal expenses of an accident are not worth that much. If you are reading this article and have never had an accident, I don't know what you were doing before reading it. Take my word for it, paying for legal expenses out of pocket is not worth it. I personally hate bad credit and the idea of having to pay even more money with a bad score to fix all the mistakes I've made in the past.
I am not saying that an accident will not happen to you, because accidents do occur to people who don't have car insurance on their vehicles or are completely unaware of their rights as a customer. If you are in this situation, I recommend finding a way to get yourself some sort of legal expenses cover. You may have to search around for a while before you find an insurance company that is willing to work with you. The best way to make yourself look good is to use a service like credit repair without paying money up front .
You can either set up your own payment system with the credit repair company or just pay off your legal expenses from your bank account each month until the debt has been paid off completely. It can be difficult paying out of pocket for something like this, but it is well worth it in the long run if you are ever hit with an unexpected bill from a careless driver.
If you are making a good amount of money, then you can start to choose how much coverage you want from your insurance company. Some people will opt to have full coverage and not worry about having an accident or paying the inevitable legal fees that come with it. If you want to save money on premiums, then get as much legal expenses cover as you can. It is well worth the extra expense in my opinion because it will protect yourself if something were to go wrong.
It is always better to have too much insurance than not enough when it comes to protecting yourself from a bad situation. Your insurance policy can either help you or cost more money. You are the one who has to pay for it, and if you want to avoid the high premiums and have peace of mind, then start using legal expenses cover. There are not many things that will make you happier than knowing that your equity is protected and your personal affairs are taken care of in the event something happens.
The whole point of this essay was to give you some ideas on how to save money on car insurance while still having a good coverage package. If you have never used legal expenses cover before, then I would suggest taking a look at it in your own state with an independent review company . You might be surprised to find that it is better to have too much coverage than not enough.
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Posted by Michael Elston at 9:00 PM No comments:
You don't always need to buy insurance on your car, motorcycle, or even boat in order for them to cover you if an accident does occur.
Conclusion
Unless you are a full-time driver that drives at least once a week, then you don't need car insurance. There are plenty of other solutions to your problem that are much cheaper than any type of auto insurance and I recommend using them.
You can either pay for legal expenses out of pocket or get coverage through Medicaid . If you do end up going this route, then good luck with getting approved! It is more complicated than it sounds, especially since not every single state will let you apply for Medicaid coverage. It may take some time before it is approved and activated on your record.
If you decide to go through with obtaining the coverage from Medicaid , then make sure that you have enough money saved up so that it is affordable.