The Hidden Dangers of Cheap Auto Insurance

In this case the statement “Cheaper isn’t alway better” definitely applies when we talking about auto insurance. I recently came across an article on which talks about the dangers of purchasing Auto Insurance strictly on the price (definitely not a good idea). Below is some of the information from the article, you can check out the entire article by clicking here. For quality care and coverage contact a Kimberley Vassal Insurance agent today!

Cheap auto insurance could actually end up costing you more down the road. To help you make an informed decision, we’ve outlined five potential pitfalls of cheap auto insurance. Keep reading to learn why the lowest insurance rates can end up costing you big-time in the long run.

You’re probably not getting the coverage you need

Okay, so after some digging, you found a cheap quote on a car insurance policy. But do you know what’s covered in the policy – and more importantly, what’s not? In most states you need some liability insurance, which covers the damage you cause to others or to property in the event of an accident, to legally drive. So, make sure you know your state’s minimum coverage requirement. However, collision and comprehensive coverage – which covers your car in the event of an accident, theft, vandalism, fire, and weather-related disasters like floods – is not required by law in the United States, according to the National Association of Insurance Commissioners’ (NAIC) website, which helps regulate insurance requirements.

Your low-priced deductible payment could lead to higher costs

One popular way to save on car insurance is to opt for a higher deductible, the amount you pay out-of-pocket before your insurance kicks in, according to “How Can I Save Money on Auto Insurance?” an article on the III’s website. This could help reduce your premium because you are agreeing to pay a set amount (perhaps the first $1,000) on any future claims. The danger is that if you are unlucky enough to have several accidents, this strategy can quickly become an expensive one. You should take a look at your finances and make a realistic assessment of what you can afford. A $1,000 deductible may not make sense if you don’t have that kind of money handy in case you need repairs. On the other hand, a higher deductible could make sense for low-risk drivers who rarely get behind the wheel. The important thing here is to be honest about what kind of protection you need and can afford.

Bad customer service is bad news, even if your policy is cheap

You know the old adage about how the customer is always right? We all know that’s not true. However, it is reasonable to expect prompt and courteous responses to your questions and concerns. “You want to find a company with a really good reputation for customer service,” Salvatore says. Salvatore urges consumers to ask friends and family members for recommendations, just like you would do if you wanted a doctor or dentist referral. Ask if they have filed a claim with their company and how it went.

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