Doesn’t it seem that once the holiday season hits you regret not having maintained a better expenses budget? In truth, everyone should be following their budget year round, but that can be easier said than done.
If you’re worried that you don’t have it in the budget to get all 12 cousins and your nieces and nephews something special for the holidays, whatever you do, don’t cancel the services you rely on, namely, your auto insurance. After figuring out how to budget for the holidays (and the new year) use an [auto insurance calculator](https://coverhound.com/auto-insurance) (read: our auto insurance platform) to get a gauge of what you need to spend for sufficient coverage. Your cousins, nieces and nephews won’t get any special treats from you or make happy memories if you’re locked up somewhere because you were found breaking the law for not carrying car insurance!
**Getting Down to Business**
Finding the motivation to sit down and look at your finances is hard, mostly because you don’t want to do it. It doesn’t feel good learning what you’re overspending on, (especially if it’s eating out or making late-night Etsy purchases) but it is something you have to do. There are wonderful [budgeting websites](https://www.mint.com/) and applications that can help you save money and set attainable financial goals for yourself, but this article is about specifically setting an auto insurance budget, so let’s get started.
**What is Your State’s Auto Insurance Law?**
This may or may not come as a surprise to you, but [auto insurance laws](http://www.iii.org/issue-update/compulsory-auto-uninsured-motorists) are not set at the federal level, they’re set by your state government. Almost every state across the U.S. (save for New Hampshire) requires that their constituents carry an auto insurance policy, but even these laws vary by state. For example, New York requires drivers to carry bodily injury liability and property damage liability insurance along with personal injury protection (PIP) and uninsured motorist protection, at the very minimum. Alabama on the other hand only requires bodily injury liability and property damage liability protection.
As you know, the more insurance you carry the higher your premium. However, insurance companies give their clients great discounts when they purchase insurance bundles. This means you could have comprehensive, liability and collision coverage and only be paying slightly more than someone with bare bones coverage. If you can get discounts for getting more insurance, why not opt for more?
**How Much is Your Vehicle Worth?**
If your car is on its last legs and you have enough cash in the bank to put a down payment on a used car, (for example, you have to pay 20 percent down on a $10,000 car) then don’t worry about getting collision and comprehensive coverage, liability insurance will do you just fine. If your car is still worth a pretty penny, then you absolutely need to purchase collision and comprehensive coverage on top of liability. If you’re involved in an accident and your vehicle is totaled, these insurance policies will help cover the costs of getting a new car. Remember, liability coverage does not cover you in the event of an accident, it only covers the other driver.
Auto insurance is a must-have service, there are no ifs ands or buts about it. Looking to update your policy? Get a [free quote](https://coverhound.com/?hh=1) with CoverHound today.