• Despite the disadvantages, auto insurance is important to have if you have an accident.Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
  
  The advantages of auto insurance are clear. Maintaining automotive insurance demonstrates financial responsibility. It provides peace of mind in that any bills resulting from an auto accident will be covered. What people often fail to remember is that there are also disadvantages to auto insurance. These disadvantages will vary depending on which type of auto insurance you carry.
  
  

Liability Insurance

• Minimum liability insurance is often selected because it is less expensive than comprehensive collision. Liability insurance pay for medical expenses and automotive repairs of others involved in an accident that is determined to be your fault. Basic liability insurance, however, does not do the same for you or your vehicle. While this form of insurance saves money on premiums, there is a distinct disadvantage in the lack of coverage. While it is comforting to know that the other party will be taken care of, an accident could still leave you without an automobile and with big medical bills. The policy will also have a maximum payout, and any damages beyond that will be your responsibility.
  
  

Comprehensive Collision

• Sometimes referred to as “full coverage” insurance, comprehensive collision is a complete insurance policy that will take care of all parties involved in an accident. If an accident is deemed to be your fault, your comprehensive collision policy will pay for the medical bills and automotive repairs of all involved parties, including yourself. Comprehensive insurance is required for any vehicle that has a bank loan attached to the title.
  
  The most obvious disadvantage to comprehensive collision insurance is that it carries a higher cost than other insurance options. The cost is prohibitive for many people. In some cases, the cost is raised by extras that are bundled into the policy. Read the policy to identify items identified as “insurance riders.” Roadside assistance and rental car coverage are common insurance riders that are bundled into policies. Canceling these items can save part of the cost.
  
  

Auto Repair Insurance

• Insurance against major automotive repairs is an ever-growing market, particularly for owners of automobiles that are coming out of the manufacturer’s extended warranty period. Having an auto insurance policy will provide coverage for major automotive repairs. These policies are great to have if you experience engine failure or need to make repairs to the transmission, drive train or fuel system. These repairs can be expensive, and an insurance policy relieves some of this cost.
  
  One of the primary disadvantages to these insurance policies is that they have a complicated system of deductibles. Rather than having one deductible for the entire repair, there are a lot of small deductibles for each part that is replaced. Those individual deductibles can quickly add up, even though you are still saving on the overall price of the repair. Another chief disadvantage to these policies is that they often require the policy holder to pay for the repairs up front, then wait to be reimbursed. Also be aware that common engine repairs, such as batteries, starters and alternators will probably not be covered unless you purchase a specific policy add-on.