Do you want to self-insure your car? The first and most important step is to understand the car insurance laws in your state. Are you even legally allowed to self-insure your vehicle in your home state? If so, how many minimum vehicles are you required to self-insure at one time?
If your state does not allow you to self-insure or you do not own the required amount of vehicles to qualify, you have to purchase the minimum liability coverage instead. Exceptions to this rule include varied laws in the states of Alaska, New Hampshire and Virginia. If you are legally allowed to self-insure as a qualified driver in your state, here’s how to do it.
Go online using any Wi-Fi or smart-technology-enabled device. Search for surety bond companies in your state and/or how to fund a secured deposit account with your state DMV or Department of Insurance. Contact your state DMV to find out the minimum amount of self-coverage required.
How much does it cost you to self-insure in your state? State minimum requirements and the amount of vehicles you own both dictate the answer to this question.
Using a car insurance quotes comparison tool online, find out how much state-minimum liability coverage costs you each year.
If you find the car insurance rates for surety bonds or other self-insurance plans cost you less, it is a good idea to self-insure your vehicle(s).
What other factors are important to consider? When self-insured you are responsible for paying all accidents, damage, repair, replacement and medical expenses when you are at fault.
If this monetary responsibility is more than you are able to comfortably afford, self-insurance is a financial risk not worth taking for you and your business.