Hidden Costs of Buying Discount Car Insurance
Every state legally requires drivers to have auto insurance, so it’s an unavoidable expense that comes along with car ownership. Naturally, you don’t want to spend any more on insurance than you have to. But are there drawbacks that come with opting for the cheapest discount car insurance? Here’s a look at some common cons to consider.
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Not enough coverage
Make sure you know how much liability coverage you’re buying. According to Insurance News Net, experts suggest having at least $500,000 worth of liability coverage. But to really protect yourself, you should carry a policy of at least $2 million. How much does your average minimal-coverage discount insurance cover? Typically, between $10,000 to $30,000 worth of liability. So if you’re in anything more serious than a minor fender bender, you could find yourself on the hook for quite a lot of money.
Dodgy customer service
Research your potential insurer before you make the switch. While the promise of low payments may be tempting, check out some reviews. You don’t want to get stuck with a discount car insurance provider that’s notorious for ignoring customer inquiries, dragging its feet with claims, or refusing to pay out. Even some reputable insurers de-prioritize customers with discount policies, so make sure to do your homework in whichever insurance provider you choose.
When it comes to low rates, there’s usually a catch — like a high deductible. So when it’s time to make a claim, you’ll be stuck footing most of the bill before your insurance kicks in to cover the rest.
Understand what your insurance covers
It may seem like you can get a sweet deal by purchasing liability-only insurance. It’s enough to keep you on the road legally, but it could leave you in quite a jam. Your liability insurance’s job is to cover the repair and medical expenses you’ve incurred on your fellow road users. So when it comes to helping you pay for repairs, you’re out of luck if you’ve only purchased liability insurance. Collision coverage is what you’ll need to get your vehicle back on the road. And if your vehicle suffers damage from the weather, you won’t be seeing a dime unless you have comprehensive coverage. On top of that, liability coverage won’t help you out with any medical bills — that’s what you’ll need medical payment coverage for.
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Kimiko Kidd is a native Daytonian. She graduated from Wright State University with degrees in environmental science and sociology. She loves her trusty old Honda Civic, but dreams of owning a 1974 Ford Falcon XB with a custom paint job and a vintage Kawasaki Z1000. In her free time, Kimiko can be found watercolor-painting, baking muffins, collecting rocks, playing old-school Nintendo games, writing her novel, sewing stuffed animals, and cosplaying as her favorite Mad Max characters. See more articles by Kimiko.