In an increasingly tight economy, many households are being forced to make financial cuts when it comes to their personal auto insurance or homeowner’s insurance. Although it is wise to minimize expenses in the current economy, it remains crucial to carry at least a basic policy for both homeowner’s and automotive insurance coverage.
With the average tank of gas in Florida reaching $3.87 at the end of April, it can be tempting to consider dropping an auto insurance policy, simply because it can seem financially impossible to insure a vehicle and fill it up with gas. Yet it’s absolutely crucial to maintain a policy; Florida insurance law requires all vehicles registered in the state to maintain a minimum of $10,000 in property damage liability insurance. The penalty for driving without insurance ranges from $150 to $500�”much more than the average cost of one month’s premium for Florida auto insurance.
The economic crunch affects more than Florida auto insurance policies, however. Homeowners are also fighting to trim budgets. Most mortgage companies require mortgagees to maintain a minimum homeowner’s insurance policy greater than the payoff amount of the mortgage. However, consumers who own their home outright are free to opt out of coverage. Many Florida homeowners, especially those directly on the coast, are dropping coverage (especially wind damage coverage) as premiums soar in the wake of recent hurricane seasons.
While it’s often wise to revisit and modify your Florida insurance policy, it is never wise to go without insurance. Auto insurance and homeowner’s insurance are the consumer’s last line of defense against financial tragedy. While meeting premiums each month can be challenging, it can be impossible to replace a vehicle or, worse, a home. Intelligent consumers take the time to find an appropriate level of insurance, and budget accordingly.
