The 4 Main Reasons Cheaper Car Insurance Isn't Always Better Insurance
You’ve likely heard the adage “you get what you pay for,” and when it comes to your car insurance, it couldn’t be more true. While it’s one of the few things you hope you never have to utilize, there may come a time when you need to put your policy into action.
When you’re looking for a car insurance policy, you may be tempted to make your decision based purely on your monthly or annual premium. While you may end up saving hundreds of dollars in the short term, you may not be pleased when it comes time to utilize your coverage as you could be responsible for high deductibles or costs beyond your coverage limits.
There are four main reasons why buying cheaper car insurance doesn’t always result in better car insurance.
While a deductible of $500 or more may not seem like a big problem should you need to utilize your coverage for vehicle damage or repairs, a major crash or incident that results in a physical injury can cost hundreds of thousands or even millions of dollars — and you are liable for anything beyond what your policy covers. In the event of a lawsuit, you could pay more than just money, losing your assets to cover the damages.
Reduced Coverage and Overall Protection
With lower-cost insurance, coverage options will be reduced. Basic liability insurance may be one of the least expensive options, but should an incident occur with an uninsured motorist or result in medical expenses, you will be footing the bills.
In addition to increased deductibles and reduced coverage, providers who specialize in low-rate insurance may offer reduced support. Claims may take longer to submit and customer service may be poor, resulting in increased frustration. Monitoring a claims process can also end up taking quite a bit of your time.
Reduced or No Perks
While not a dealbreaker, some of the higher-priced policies with full-coverage options often come with additional perks, such as roadside assistance, complimentary rental cars, and travel discounts. This can save you monthly fees for separate roadside programs and ensure peace of mind when traveling.
If you still want to find ways to reduce your rates without giving up your coverage, you can inquire about possible discounts such as those for veterans or active military, students or teachers, and more.
Be sure you get exactly what you pay for with your car insurance. Shop around and always compare more than just premiums when selecting providers and coverage options.