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The main thing to watch out for when buying auto insurance online is understanding what each coverage option is and resisting the temptation to just buy the cheapest possible insurance. There’s a difference between having an affordable, competitively priced auto insurance policy with simply having the cheapest policy possible.

Oftentimes, the cheapest insurance will mean buying only the state minimum liability limits with no other types of coverage. Or having both collision and comprehensive coverage on your policy is expensive, you might be tempted to save money elsewhere, such as on your liability coverage.

Buying the state minimum liability limits can be very risky because it simply doesn’t cover you for much money if you’re responsible for an accident.

If you cause an accident and your insurance limits aren’t high enough to cover the other person’s injuries (or lawsuit costs if there’s a death involved), then you’ll be responsible for paying the rest of the money out of your own pocket. And if you don’t have that money laying around, your other assets could be taken, including your house, vehicle and a portion of your future earnings.