Auto Insurance: Saving for the Rainy Day

save-insurance-nowIf you own a car, you already have an idea what an auto insurance policy is. But like most policyholders, you only know little of its workings and the many details that go with it. Besides, you are likely not aware of how wide a field it covers for you to select the best deal for your particular needs.

Forty seven states require you to have some kind of an auto insurance coverage. The principle behind assumes that you must have a fund to lean on should you meet an accident on the road. Roads are public and anything goes in public places. There is no telling when a mishap will strike. But once it hits, it pays off to have insurance money at the ready.

There is an odd but very relevant lesson about auto insurance in the strange case of Jaime Castell, a Spanish hotel executive. He was driving home one night when a speeding car in the opposite direction swerved off, jumped over the median barrier, flipped over and landed upside-down over Castell’s car killing him instantly. The insurance paid Castell’s pregnant wife his $100,000 policy. But that was after Castell bought the policy just a few weeks before his death. He had dreamed that he would never ever see his unborn child.

We cannot be all as lucky, or unlucky, as Señor Castell. But it’s sure a good thing to have some readily-available money when the rainy days come.