About Very Cheap Car Insurance

Are you searching for extremely cheap car insurance? Think you can use the money you save to invest in your home or have fun out on the town? Well, think again. Very cheap car insurance can hurt you in the short and long run. It hurts you when you want to receive good customer service, make a claim, pay off third-party vehicle or bodily injury damages and get better insurance. These three things may end up causing you a big financial loss, which will eat up all of the money you save in car insurance premiums.

Warning
Ever pay attention to those TV commercials advertising very cheap car insurance? The people in them look like the kind of folks you would rather not meet up with in a dark alley. And, unfortunately, they represent the kind of service you will get from insurance companies that specialize in cheap insurance. The callbacks and payments for claims are slow, and sometimes the people are rude. It all has to do with a substandard mentality about insurance coverage. So if you get into a jam and really need help from your agent or claims adjuster, you could be stuck without a lifesaver.

Effects
Very cheap car insurance has high deductibles and absent coverages. For example, collision and comprehensive deductibles will usually be $1,000 or above. If you hit a tree and have a $900 auto repair bill, you won't get paid anything. Also, similarly, if you decide to forgo collision and comprehensive coverage and get a liability-only policy, you won't be paid a dime for a stolen vehicle. As a result, you will pay more for your losses than if you had just paid for more expensive coverage.

Considerations
Another downfall of very cheap car insurance is that liability limits are usually low. Liability is the coverage that pays for an innocent party's injuries or car damages. It kicks in if you cause an auto accident. Unfortunately, if these limits are low, you could exhaust them and end up owing for outstanding medical bills or vehicle damages. Consequently, you won't be absolved from responsibility just because you run out of insurance. An attorney can put a lien on your house to compensate for his injured client. It's a scary situation that does happen to people with very cheap insurance.

Potential
The last way very cheap insurance can hurt you is when you want to get better insurance. If you decide that you want to pay for higher liability limits or add on additional coverage such as collision, it may not be available to you. Some insurance companies and agencies that specialize in subprime, cheap insurance don't offer a wide range of coverages to their customers. So if you want better coverage, you actually have to cancel with them and find coverage with a new company. It's a frustrating process that can take up a lot of your time.

Prevention/Solution
As you can see, there are a lot of things to consider when you purchase very cheap car insurance. Overall, you must decide if it is worth the risk. If you have a new car or a little money in the bank, it's best to pay the extra money to get adequate, full coverage. It is the only way to protect yourself from financial devastation in the future because of an auto accident.

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