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Cheap Car Insurance May Not Be the Best Idea

April 28, 2016

Buying cheap car insurance could put you at risk.

Lots of car insurance companies are promoting their online quote services where you give them some information about you and your car and they provide you with the lowest car insurance prices available. Who doesn’t love to pay less, especially on something that you have to purchase anyway? But buying cheap auto insurance probably is not the best idea, and here’s why.

What it means to have cheap auto insurance.

File Police ReportOne way people get “cheap car insurance” is that they purchase the lowest available car insurance coverage. The problem with this approach is that they may not be properly covered. The money you pay in premiums goes toward the cost of any claims you may have to place later on. If your payments are extremely low, then odds are your coverage levels are too. For example, if you have only $50,000 worth of liability coverage and you are involved in an accident where you are responsible for $100,000 worth of damages; your policy will only cover half of the cost. The rest may be up to you to cover.

Not sure how much coverage is recommended for you and your vehicle? We recommend talking with your current agent and discussing available options with them to get an idea of what kind of coverage levels are right for you. This can depend on a number of factors, so it’s best to speak with someone who knows you, your driving record, and the area in which you live. Typically, that person is your local car insurance agent.

You can still save money on car insurance.

It’s all about information. Providing specific information when getting a quote ensures that you are quoted the most accurate prices. Shopping around is another way to find the best deal. You could get the same level of coverage from several different insurers, but they would all be different prices. So shop around and see who will offer you the best price for the coverage you need.


Learn More About Auto Insurance

When it comes to auto insurance, there are a lot of variables, a lot of unfamiliar terms, and a whole lot of peculiarities – particularly when you consider that each state has its own insurance market. Our Auto Insurance Explainers can help sort it out for you, and make more educated decisions about your car insurance.

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