Overpaying for auto insurance might get you to overthink, right? There is no doubt that no one wishes to pay more for car insurance than they should but it’s better to know that there’s a large difference between cheap car insurance and car insurance. You may be considering switching to a cheap car insurance company.
Although you might be thinking, is cheap auto insurance really worth it? When considering buying a cheap car insurance policy, there’s plenty of things to consider and it’s not only about staying legal. In order for you to make a better decision about cheap insurance, this is the article that will definitely help you out.
Very Little Protection
The old saying goes, “you get what you pay for.” This is actually true when it comes to handling cheap car insurance. Although getting cheaper insurance will certainly save you money on a month to month basis, it also means less coverage. It doesn’t really matter how excellent of a driver you are because no one can ever foresee the future. It sounds terrifying to find yourself in an accident only to discover that your coverage is limited.
Having the choice to save a bit of money every month can end up costing you more in the occurrence of an accident.
Deductible means the amount you’re responsible for paying out of pocket in the day of an accident. But if you try to look closely, the way a lot of cheap insurance policies cut off the money of your monthly payment is by increasing your deductible.
In the day of an accident, you can even find yourself with a higher than the normal deductible you may or may not able to afford to pay.
Assets and Future Earnings at Risk
Although every state may vary in law, each of them is the same in requiring drivers to carry liability coverage. Every state sets minimum limits for that coverage. But these are actually “bare-bones” amounts of insurance that may not completely protect you financially in a significant accident. For instance, if your state’s minimum of $25,000 per person of bodily injury liability insurance, it may look like a lot of money, but in reality, it’s not if the other driver is seriously hurt and you’re the one who’s at fault. So, limits and deductibles may be a dangerous place to try to trim corners on insurance.
Even a Cheap Car Can Bring Costly Damage
A $1000 beater car still requires a considerable amount of liability coverage. The reason is, you may still cause an accident that damages another, more costly car or seriously harm another driver or pedestrian. It’s not a good idea to cut corners on your auto policy’s liability coverage. If you have your own car that has no loan or lease, it’s better to have the choice of dropping collision and comprehensive coverages to help lower your premiums.
It makes sense if you cut collision only if your car isn’t worth much. However, you need to think wisely about dropping comprehensive coverage just to simply save several bucks. If your car gets stolen or vandalized, for instance, without having this type of coverage you’ll likely have to pay out of pocket to replace or repair it.
Least Customer Service Support
Paying a higher cost for car insurance means you don’t only pay more than premiums, you also pay for the customer support you will have. Having cheap car insurance usually lacks better customer service support. Since they have limited staff, you can find yourself waiting for longer periods of time to get a claim resolved.
You should always read online reviews of these cheap insurance company to get some information for what the customers are saying about them. But we highly suggest looking for a credible and trusted insurance broker from a prominent insurance company if cheap insurance is not really your main concern.
Increase in Liabilities
If you’re paying lower premiums for your insurance policy, it’s certain that you also receive lower coverage. The problem with lower coverage is that it will increase your liabilities. When damages and bodily injuries exceed the amount covered in your policy, you’ll have additional liabilities. And if ever the policy goes wrong in covering all of the policy, you are the liable person who will pay the rest out of your own pocket.