Auto insurance coverage falls into two categories:
There is the full coverage policy which takes care of the insured’s car as well as the cost of damage to other cars involved in an accident.
The other type of policy known as liability or third party auto insurance will generally pay for damage repairs and bodily injury of the other car and passengers involved in the collision.
While auto insurance is necessary for financial protection, there is no reason to purchase one with a higher premium that covers more than is necessary. The goal is to shop around with insurance carriers to obtain a cheaper quote that still provides adequate coverage in case of an accident.
Getting a cheaper premium however might be a bit difficult for people with low credit scores and reckless driving habits, but there are some reputable companies who can still work with people in this situation.