Drivers have seen their auto insurance premiums rise drastically since the COVID-19 pandemic.

In fact, the rising rate of auto insurance nationally is much higher than health and homeowners.

So an increasing number of drivers are choosing to go with the minimum state insurance, liability only, to be on the road.

If you’re in financial trouble, it’s much cheaper than full coverage.

But one woman found out that if you’re involved in an accident or your car is stolen, you could lose thousands of dollars.

Stolen car, no coverage

Bernice Evans says burglars broke into her downstairs apartment and stole her car keys while she slept on a recent night.

“They came in here and they’re taking both my car keys,” she said, pointing to a table by her door. “They came out my door and stole my vehicle.”

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

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

“It totaled up,” she said.

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

“I had liability because I couldn’t afford full coverage,” she said. “Liability only.”

WCPO

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

“Liability insurance is one step above being uninsured,” she said.

If you cause an accident, she says the 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 don’t have what’s called “comprehensive” coverage.

A few things you can do

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

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

She says to also ask about discounts, such as bundles, usage-based discounts and discounts for teachers or first responders.

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

A higher deductible, she says, “might 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, now has to rely on family for rides.

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

She hopes to shell out a few thousand dollars to buy a new car.

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

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