Cheap Insurance is not the answer.
Cheap auto insurance is not always better because it comes with drawbacks and limitations that can leave you inadequately protected in the event of an accident or other unexpected circumstances. Here are several reasons why cheap auto insurance isn’t necessarily the best choice:
Inadequate Coverage
Cheap policies often provide only the minimum coverage required by state laws, which may not be sufficient to cover the full cost of damages in a serious accident. You might find yourself responsible for substantial out-of-pocket expenses.
In terms of auto insurance, cheap policies quote you at state minimum limits: $30,000 bodily injury, $60,000 total bodily injury per accident, and $25,000 in property damage per accident. These limits are extremely dangerous to carry due to the unrealistic coverage they provide.
At Alliance, we start our quoting at $100,000 bodily injury, $300,000 total bodily injury per accident, and $100,000 in property damage per accident. These limits prioritize safety for all parties and ensure coverage in our current economic state.
Higher Deductibles
To keep premiums low, cheap insurance policies typically have higher deductibles. This means you’ll have to pay more upfront before your insurance kicks in to cover damages.
Limited Coverage Options
Cheap policies may exclude important coverage options or offer only basic coverage, leaving you vulnerable to a range of risks like theft, vandalism, natural disasters, or medical expenses. Some agencies only quote liability coverage to their customers which promotes a better price point but with less protection for all parties. One of our agents would love to discuss your coverages with you!
Limited Customer Service
Some budget insurers may not provide excellent customer service, which can be frustrating if you need to file a claim or have questions about your policy. At Alliance, we have a large team that is ready to assist you with payments, claims, and questions. We have trained specialists to ensure your process is quick and efficient!
Difficulty in Claim Processing
Inexpensive insurers might make the claims process more challenging, leading to delays or denials in getting the coverage you need when you need it most.
On the contrary, our claims specialists at Alliance are trained to treat every claim with professionalism, urgency, and respect. This process at Alliance is a priority because we know the significance it can hold.
Unreliable Companies
Not all budget insurance companies are reputable or financially stable. Choosing a company with a poor track record or financial instability could leave you without coverage in case of a claim. To avoid this at Alliance, we use reputable carriers that we trust to protect our own families. As an independent agency, we have the ability to shop several reputable carriers to find the best fit for your family.
Less Comprehensive Benefits
Cheap policies may offer fewer additional benefits, such as rental car coverage, roadside assistance, or coverage for uninsured/underinsured motorists.
High Risk of Rate Increases
Some cheap insurance providers might lure customers in with low initial rates but raise premiums significantly after the first term or when you file a claim. It is important to remember that cheap insurance is not quality insurance. If your rate is cheap, there’s either a lack of coverage or a rate increase around the corner!
Exclusions and Fine Print
Cheap policies often come with more exclusions and fine print that could limit when and how you can use your coverage.
Lack of Customization
Budget insurers may not provide the flexibility to customize your policy to match your specific needs and circumstances.
To find the right auto insurance policy, it’s essential to strike a balance between affordability and adequate coverage. It’s recommended to:
- Assess your insurance needs and determine what types and levels of coverage you require.
- Consider factors like customer service and claims satisfaction
- Read and understand the policy terms, including deductibles, coverage limits, and exclusions.
- Look for discounts that can help reduce your premiums without sacrificing coverage.
Remember that the cheapest policy is not always the best choice in the long run. It’s crucial to prioritize coverage that adequately protects you, your vehicle, and your financial well-being in the event of an accident or other unforeseen events.
Looking for quality insurance? Reach out to one of our agents below!
