Dirty secrets about cheap car insurance
The Dirty truth about Cheap Car Insurance Policies
It really seems that nowadays we can’t watch TV or surf the Internet without coming across ads aired or posted by car insurance companies encouraging people to go for bare-bones insurance coverage. Such a policy offers just enough insurance to let you legally take out the car. Sure, it’s an easy way to get cheap car insurance, but what if you have an accident and need to file a claim. What do you think will happen then?
Simply Not Enough Protection
A bare-bones policy just doesn’t offer you the kind of financial protection you need. Let’s suppose your insurance policy just has $15,000 available in property damage coverage per accident. At a busy intersection, you accidentally ram into someone's wall and the repairs cost well over $15,000. Insurance policies with minimum coverage will quickly become exhausted, and you will be forced to pay for the rest of the damage from your own pocket.
What About Lawsuits?
That’s not all. What if the accident results in a lawsuit? While car insurance policies do cover legal disputes, they will do so only up to a certain limit. Do you really want a bare-bones legal team to have your back if you’re sued?
A ‘Cheap’ Marketing Tactic
Bare-bones coverage is often nothing more than a marketing tactic to get more prospects to buy insurance. While you may get cheap car insurance in the beginning, the company will progressively increase your payments every time you renew your policy. Soon, you’ll pay just as much as you would for insurance with much better coverage while getting the same threadbare protection.
Lousy Customer Service
It actually makes sense to pay a little more in order to enjoy better customer service. While customer service is usually lousy, having a local and personal agent helping you out is obviously much better than dealing with someone on the phone sitting hundreds of miles away in a different country.
While cheaper insurance can save you money in the short-term, it can cost more over time. Save money by learning their tricks!