The Pros and Cons of Cheap Car Insurance
While vehicles are increasing on the road every day, so are the accidents. These accidents are more severe, with losses of life and physical damages. For you to help reduce such risks, it is important to get an insurance cover. If you cannot afford a comprehensive policy, there are cheap insurance policies. However, there are advantages and disadvantages to cheap insurance cover.
Pros
Helps to pay your medical bills
It is bad to be involved in a severe accident, but it is more effective in case of severe damage or injuries. So you will need to be prepared for such incidents because you will have to pay for the costs from your pocket. Therefore, cheap car insurance rates allow you to save for your financial responsibilities. You will also be able to pay for the damage cost without using your costs.
It helps you to fulfill the law requirements
It is important to purchase an insurance policy as it is mandatory to have it in some states and countries. It is a crime to drive your cover and premiums. In fact, if you want to save yourself from the legal proceedings and court, then you should get a good insurance cover for your car.
It helps you to pay the replacement cost
When involved in an accident, you are expected to pay for the damages and repair costs with your assets. However, with an insurance cover, you could get the money after claiming the accident. Some of the insurance companies give compensation for the damage and repair.
Cons
Drivers can fail to get their car back after a claim
Drivers with cheap car insurance policies have high chances of remaining without a vehicle after filing a claim. Policyholders fail to raise the money for their cars’ repair after a crash, while their cheap cover won’t cater to the costs and so they are forced to stay without it until they can pay for the repair.
Your coverage doesn’t cover more serious accidents
The liability coverage usually comes with very low limits. Although the experts recommend that you get at least $500,000 of each accident’s liability coverage and $2 million for full protection, those cheap policies offer only $10,000 to $30,000 liability for an incident. Moreover, the small limits can easily be exceeded even during a minor accident, with just a few passengers that need costly medical treatment.
Drivers can’t fix their vehicles after a collision
Drivers are not able to repair their cars after a collision. Insurance cover includes the damage inflicted on other vehicles, Passengers, property, and drivers if the policyholder has only purchased liability coverage. Unfortunately, the liability coverage doesn’t cover the costs of repairing the damage caused in the accident.
High deductibles
Paying high deductible is another way of lowering the monthly insurance premiums. However, when they need to make a claim, they must make some upfront payment before the insurance kicks off.
Bad customer service
Some insurance companies will only offer better customer services for people with expensive or higher premium policy rates than those with only liability coverage. However, this doesn’t sound that bad or important, but customers with insurance claims will require full customer support.
Wrap up
Cheap insurance policies are good, but several disadvantages accompany them. If you are going to purchase a cheap policy, you should be ready to cater for the damages and repairs after an accident. This could be expensive, and in most cases, many drivers end up without a car because they won’t afford it.
https://www.nationwide.com/lc/resources/auto-insurance/articles/cheap-car-insurance-quotes
https://www.carinsurancecomparison.com/what-are-the-pros-and-cons-of-cheap-car-insurance-companies/