We all would like more affordable car insurance. You will find several budget car insurance companies attracting customers with promises of low monthly rates and ridiculously low deductibles. You should know that the type of coverage they are offering you for these low rates is insufficient coverage and will mean more out of pocket cost to you when filing a claim.
The majority of budget car insurance companies are offering only liability insurance that meets the legal requirements of your state. This leaves a huge gap in coverage that could cost you thousands.
Liability insurance offers little protection to you in the event of an accident. If you are at fault you will be responsible for any damages that your vehicle suffered as well as your own medical costs if any. Your coverage may not be enough to cover repairs to the other vehicle or to cover the medical costs from their injuries. This means that you will be financially responsible for any of this excess and risk losing your home, savings or any assets you might own.
Damages your vehicle encounters that are not your fault but are due to hail, wind, or vandalism will not be covered in your policy and the cost of repair will be yours to bear. Liability insurance does not pay for damage to your vehicle no matter how it occurred. So if you drive off the road in an ice storm and hit a tree any damages to the vehicle, injuries to yourself, or cost of the tree will be yours to pay and yours alone.
Many drivers on the road will have this budget insurance and what it means to you is if you are using the similar type insurance is that you pay for what their insurance company will not, even if it is their fault. There is no coverage offered for underinsured motorists or uninsured motorists in these cheaper policies. This means that any type of accident, your fault or not could cost you thousands of dollars and risk you losing your valuable assets.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
That low deductible you were given is nothing more than a scam. No type of claim will require a deductible to be paid since you are responsible for all the damage that occurs to your vehicle. That low deductible amount is just used as a tactic to make you believe you are receiving an awesome policy when in fact you actually receiving nothing for your hard earned cash.
It is illegal to drive without insurance and the budget car insurance offered by many companies id designed only to keep you legal. There is no real protection to your property or your assets and the money you are spending is a waste.
The majority of budget car insurance companies are offering only liability insurance that meets the legal requirements of your state. This leaves a huge gap in coverage that could cost you thousands.
Liability insurance offers little protection to you in the event of an accident. If you are at fault you will be responsible for any damages that your vehicle suffered as well as your own medical costs if any. Your coverage may not be enough to cover repairs to the other vehicle or to cover the medical costs from their injuries. This means that you will be financially responsible for any of this excess and risk losing your home, savings or any assets you might own.
Damages your vehicle encounters that are not your fault but are due to hail, wind, or vandalism will not be covered in your policy and the cost of repair will be yours to bear. Liability insurance does not pay for damage to your vehicle no matter how it occurred. So if you drive off the road in an ice storm and hit a tree any damages to the vehicle, injuries to yourself, or cost of the tree will be yours to pay and yours alone.
Many drivers on the road will have this budget insurance and what it means to you is if you are using the similar type insurance is that you pay for what their insurance company will not, even if it is their fault. There is no coverage offered for underinsured motorists or uninsured motorists in these cheaper policies. This means that any type of accident, your fault or not could cost you thousands of dollars and risk you losing your valuable assets.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
That low deductible you were given is nothing more than a scam. No type of claim will require a deductible to be paid since you are responsible for all the damage that occurs to your vehicle. That low deductible amount is just used as a tactic to make you believe you are receiving an awesome policy when in fact you actually receiving nothing for your hard earned cash.
It is illegal to drive without insurance and the budget car insurance offered by many companies id designed only to keep you legal. There is no real protection to your property or your assets and the money you are spending is a waste.
About the Author:
Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Car Insurance Options.
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