We all want cheap car insurance. It can be enticing to switch companies due to a promise of lower rates. The budget insurance companies will attract their many customers by making promises of low monthly payments or extremely small deductibles. The thing you have to consider is what type of coverage are these companies willing to offer for those low policy prices?
The coverage you receive for these cheap insurance payments could result in insufficient coverage in the event of an accident. The majority will only offer liability and will cover you at the states minimum requirement of coverage. Many times this means that if you are involved in an accident you are left holding the majority of the bill.
Liability means that if an accident is your fault you will pay for the repairs of your vehicle while the insurance company will pay for a certain amount of repairs done to the injured vehicle. If people involved in the accident were hurt the coverage for their injuries might be insufficient and you could stand to lose your home, savings, or any other assets you may have.
If your vehicle is damaged due to hail storms, high winds, or even vandalism you will be responsible for all the repairs. The insurance will be under no obligation to pay for any damages since you are not carrying full coverage insurance. This will stand true as well if you back into something or wreck your vehicle in an ice storm, there will be no coverage for your vehicle at all and any repairs needed or damage you cause will be your responsibility.
If you are involved in an accident and it is not your fault but the other driver is uninsured or underinsured to cover your damages you will be responsible for the costs. Budget car insurance does not cover you in the event of uninsured motorists or underinsured motorists damaging your vehicle.
If your car is stolen and you only have liability insurance you will not be able to file a claim. You may never get the vehicle back and you will be responsible for purchasing a new one out of your own pocket. If you are lucky enough to receive the vehicle back any damages that it incurred while being out of your hands will be your responsibility to pay for.
Those low deductibles are a scam. There is no claim that will even require a deductible from you, you will pay the full amount with any claim that has done damage to your vehicle. The insurance companies can offer no deductible if they want to because they know you are not covered for anything that actually requires one.
Budget insurance may seem like a dream come true, paying only a small amount each month. The truth is you are wasting your money and you might as well be burning it in your backyard fire pit. The laws require you have to have insurance and the budget car insurance that is offered will only supply you the legal amount of coverage required by your state.