Glittering cheap car insurance might not be gold
Roger thought that he was lucky enough to get the best deal for his car insurance, at the lowest possible rates. Then when he got involved in an accident, his insurer denied paying for the losses incurred. A claim denial finally brought him back to his senses, and he realized that cheap car insurance may not be the best car insurance after all.
This is the case with many of the US citizens. Consequently, the vehicle owners have to bear the costs for the damages, even though they had auto insurance protection. If you’re about to buy insurance protection for your car, you need to know why a cheap car insurance policy should always be treated with skepticism.
Why a cheap car insurance policy is to be avoided?
Insuring your car might seem pointless till you get involved in an accident. When you buy insurance protection for your car, you actually hand over the risks associated with the vehicle to the insurer. The insurer charges you the premiums, for managing all the risks on your behalf. Thus, the more chances you have to be in an accident, the more you’ll have to pay for your car insurance.
Now, if an insurer promises you low rates which are too good to be true, consider the following points:
- The coverage must be low too – Nothing comes free and the insurance companies are not there to do charity. So, if they are charging you too low, your coverage limits must be low too. They must be only offering you the basic coverage. As a result, if the damages in an accident are more than the insurance coverage that you have, you’ll have to pay it on your own. Along with the minimum state requirements, an individual must also buy additional auto insurance protection. It’s obvious that if you want the best coverage, you’ll have to pay extra for it.
- There might be hidden clauses – The policy might have certain conditions in it, which you are unaware of. Your insurance company might use them as tools against you when you file a claim and deny paying for the damages. Thus, it’s advisable to check for the hidden clauses in a car insurance policy, before you sign the documents.
- The claim process might take too long – People usually need immediate financial assistance when they get into an accident. If the claim process takes too long to start and the insurer keeps on delaying the payments, the whole point of having car insurance protection is lost. Thus, an individual must get referrals and research about an insurance company when they go out to buy insurance coverage. Opting for an insurer who promises you the lowest rates might be great. However, if he delays paying for the damages during an accident, you’ll be at a loss yourself.
- The company might be unregistered or fake – Often it has been found out that people fall into insurance scams, and keep on paying for a car insurance protection that doesn’t even exist. They only find out the reality, when they get involved in an accident and file a claim. So, it’s sensible to check whether or not the insurance agent and the company are registered in your state, before you purchase a policy from them. It’s safe to purchase an affordable car insurance protection from a company with a good market reputation, than to buy a cheap policy from an unknown insurer.
One shouldn’t compromise with coverage in order to secure the lowest rates for car insurance protection. It might seem cheap at first sight, but will cost you later on.
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