Choosing Auto Insurance Coverage on SSDI
Hi everyone, I’m a 33-year-old woman living in Virginia, and I need some guidance on selecting the right auto insurance coverage since my income is quite limited.
I’m currently on a fixed disability income that barely covers my housing expenses. I don’t own any property, and my only vehicle is a paid-off 2006 Jeep Wrangler TJ. Throughout my driving history, I’ve had one speeding ticket from five years ago that was dismissed, and I’ve made three claims: one for hydroplaning during a hurricane ten years ago, one for hitting a deer six years ago, and another when I was rear-ended in a hit-and-run three years ago.
I typically drive 100 to 200 miles a week, mainly just to attend medical appointments. My only asset is my SSDI backpay, which may not last given the current economic situation. I have both Medicaid and Medicare for health coverage, but often I face challenges getting my regular medications covered without going through an appeal process.
Previously, I had 100/300 coverage, but I simply can’t afford the $200 a month for vehicle insurance. That’s nearly 20% of my fixed monthly income. However, I do need full coverage in case of an accident, as I rely on my vehicle to get to my doctor appointments, and I don’t have anyone to assist me.
What coverage limits would you recommend for my situation?
It sounds like you’re in a challenging situation, and it’s important to find the right balance between adequate coverage and affordability. Given your circumstances, here are some suggestions to help you decide on the necessary auto coverage:
Liability Coverage: You typically want to have at least the minimum required liability coverage for your state. In Virginia, that’s 25/50/20, which means $25,000 for bodily injury per person, $50,000 for total bodily injury per accident, and $20,000 for property damage. This is the bare minimum, but it’s a good start.
Collision and Comprehensive Coverage: Since you’re looking for full coverage, consider how much you can afford for both collision (which covers damage to your car) and comprehensive (which covers non-collision incidents, e.g., theft or natural disasters). You might think about a higher deductible (like $500 or $1000) to lower your monthly premium. Just make sure you set aside some savings for that deductible in case you find yourself needing to use it.
Uninsured/Underinsured Motorist Coverage: This can protect you if you’re in an accident with someone who doesn’t have adequate insurance. Given your driving history, it might be wise to include it at a lower limit, balancing the cost.
Consider Discounts: Many insurance companies offer discounts for various reasons, such as having a good driving record, being a safe driver, or bundling policies if you have other types of insurance. Don’t hesitate to ask about these.
Shop Around: It’s crucial to compare quotes from different insurance providers. Rates can vary significantly between companies, so even a few minutes of research can lead to substantial savings.
Talk to an Insurance Agent: Consulting with an insurance agent may help you find policies specifically tailored to your financial situation. They may recommend discounts or suggest policies that provide adequate coverage at a lower cost.
While you want to ensure you’re legally covered and adequately protected, keeping costs manageable is equally essential. Assess your risk tolerance and choose coverage that balances your needs with your available budget. Good luck, and I hope you find a solution that works for you!