While the lure of cheap car insurance can be exciting with all of the associated costs of operating a car, sometimes taking the cheap route can end up costing a lot more money in the long run. If you’ve been lured in by the promise of cheap insurance or if you are contemplating it, here are some things to consider before you decide that it’s the right choice for you.
Do You Have the Coverage that You Need?
While cheap car insurance can seem like an automatic bonus because you’re insured and that’s all that should be required, it’s more than likely that your cheaper insurance rate may not provide the coverage you actually need in the event of an accident or other automobile issue. Because cheap auto insurance will often take the shortcuts that might not be found in a more expensive type of auto insurance, this means that collision and comprehensive coverage may not actually be included in your insurance policy since they are not generally mandatory parts of an insurance package. As this type of coverage will insure your vehicle in the event of theft, vandalism, fire and flood, it can be an important type of coverage to have so that you don’t end up paying more than you bargained for in the future.
Will You Have the Customer Service You Need When You Need It?
If cheap rates are what you’re looking for, you might be tempted to stop searching as soon as you find the most inexpensive option for insurance. However, if you end up in an accident with your automobile and you’re forced to deal with the ill consequences of sorting out your insurance issues as well as your finances, you might want to know that someone is going to be on your side to show you the ropes and take you through the procedure involved in a claim. Good customer service might not seem important while you’re accident free, but with an insurance company that is trying to give you the best deal, it’s entirely possible that you may have a hard time tracking down or getting someone to deal with your issues effectively and efficiently so you don’t have to suffer the headache on your own. Going with a more expensive policy could mean better customer service, which will be a great advantage in the event of an accident. Before you seriously consider signing up with an insurance company, you may want to look at the customer reviews so you can be ensured a somewhat seamless claim process in the event of an accident or automobile insurance issue.
Is It A Scam?
As with many options in the world that offer great savings, there can be many cheap automobile insurance offers that are not as legitimate as you’d like them to be. While there are companies out there that can provide the economical plan you’re looking for, if you’re getting a rate that is significantly cheaper than the standard market rate, there’s a good chance that it could be a scam that is not worth pursuing. A couple of good ways that you can tell if the company that you’re looking into might not be legitimate are if you have trouble contacting of the agency or if the insurance coverage and offers seem much too good to be true. If you’re still uncertain, you can also try contacting the local insurance department in your area and they will be able to advise you on which insurance companies are reliable and which are not. As all insurance companies and agents are required to be licensed, this will provide you with a quick and easy way to discern who will protect your best interests.
Is Your High Deductible An Accident Waiting to Happen?
Since many people who are already looking into cheap car insurance options may decide they want to pay a higher deductible to minimize their premiums in the event of an accident, it may seem like an option that can be more economical. However, if you end up getting into more than one accident, this type of strategy can actually work against you and may be even more costly than higher insurance. While having a higher deductible may end up working quite well for you if you’re risk free and haven’t had a lot of accidents, in the unforeseen event that you experience some negative events with your automobile, whether an accident or a theft, this means you will have to pay a lot more money towards your car insurance with each new automobile issue. As the point of car insurance is to cover you in the event of an unpredictable event or accident, you’ll want to make sure that banking on an accident free record and a higher deductible doesn’t end up costing you a lot more in the long run.
Car insurance at less expensive rates can seem like a great find when you’re dealing with the high cost of maintaining a car, but the same low cost insurance can be a nightmare to deal with if you ever actually have to deal with an accident or an insurance issue. With many low cost insurance companies offering poor customer service and coverage that may not help you in many accident situations, you may want to investigate all of your insurance options in depth before you decide which one is the best choice for you.