How much coverage did your friend purchase? Purchasing only the state minimum requirements will definitely get you the cheapest rates, but it may not be the coverage you desire. Your friend may have only purchased this minimal amount while you are carrying full coverage. Cheaper insurance in terms of how much coverage is purchased may backfire if there is ever a major accident. Usually minimal coverage will not cover the expenses involved in a major accident, especially if you are at fault. There are medical bills and property repairs (possibly of both parties) that would need to be taken care of. Some states only require drivers to purchase $10,000 of property damage, but the total cash value of some of the cars on the road today are far more than that amount. However, the final decision of coverage purchased is decided by the policyholder, usually according to their budget.

Don’t get in the habit of comparing your car insurance policy to someone else’s policy, especially when all of these factors between the two policyholders are different. The only comparing that should be done is by insurer to insurer for the policy you want to purchase. Who offers the lowest price for the coverage YOU want? Check out our comparison tool on our homepage or at the top of almost any page on our site by entering in your local zip code. We pride ourselves on our ability to get any driver the cheapest car insurance in town.