A car industry trend report recently revealed that there was a decrease in car insurance rates.
This would appear to be good news for people trying to make ends meet in a global economy that has been in a rut.
However, the rate reduction was the result of people decreasing their level of auto insurance coverage.
Auto owners are opting for limited liability versus full coverage.
To compare car insurance coverage based on short term cost without weighing in real risks is to ignore the obvious.
Accidents do happen, however unplanned they may be.
Worldwide estimates indicate that 1.
2 million people were killed in traffic collisions in 2004, with another 50 million injured.
Although each state has a minimum insurance requirement, the savings appeal for limited liability insurance coverage may only be short lived.
High risk long term exposure to potentially significant expenses when an accident occurs can catapult a thrifty driver into the debt zone.
Bodily injury and property damage by accountable drivers with limited liability insurance may result in a law suit that seizes personal assets.
In the long run, drivers and the public are better off protected from financial disaster should an accident strike when more than limited liability insurance is in effect.
Consumers are advised to know state auto insurance regulations by visiting state insurance administration websites.
The National Association of Insurance Commissioners offers consumers free online guidance about all types of insurance, including auto insurance.
The site includes links for state insurance departments.
The "Insure U - Get Smart About Insurance" link aims to educate consumers about making well-informed purchase decisions.
Prior to purchasing an insurance plan, the organization advises consumers to contact the state insurance department.
Additionally, compare car insurance rates for best plan coverage, and use the Consumer Information Source to review complaints.
After purchasing insurance, the recommendation is to annually review your plan to see if it still comes out as the best choice.
Consumers hoping to reduce auto insurance costs might consider other options.
For example, scaling down the car versus scaling down the car insurance is a thrifty, low-risk option.
Fully insured drivers who drive older cars, such as classic cars reap huge savings in the cost of their insurance compared to newer model cars.
Also, if a driver selects a car insurance plan with a higher deductible, as with health insurance plans, monthly premiums will be less.