Is there really any difference between cheap and affordable auto insurance? Like most things in life, you get what you pay for. But is that the case when it comes to auto insurance? It depends. We’ll help you decipher how to get the most out of your car insurance policy, without overpaying.
- Cheap auto insurance is the bare minimum of coverage required by law. It’s quick and easy to get, and won’t overburden you with costly monthly premiums.
- Affordable auto insurance, while still inexpensive, can offer more coverage to keep you adequately covered in the event of an accident.
Let’s look at the difference between the two types:
Cheap Auto Insurance
Cheap auto insurance is typically the kind you buy online from a no-name auto insurance company. You pay them a small fee and they will provide you with a certificate that shows you have the basic bodily injury and property damage coverage mandated by law.
In many cases, this may be all that you need. If you rarely drive, or only drive short distances, for example. If you are a safe driver with a good driving history, this may also be enough. However, if you cause an accident, this type of liability insurance will ONLY cover the victim of the accident. If you total your car or injure yourself, you may find yourself paying out of pocket for repairs or medical bills. Additionally, if you cause a major accident, the victim’s property damage or bodily injury damages may exceed your basic policy and again, you may end up paying thousands of dollars out of pocket to cover the victim’s property damage and medical bills.
Affordable Car Insurance
Affordable care insurance, on the other hand, is still budget friendly while providing additional benefits. These types of insurance policies are issued by reputable insurance companies who work with you to determine how much coverage is appropriate for you. They will also help in you the event you must file a claim. You may also add additional personal injury protection, medical coverage, uninsured motorist coverage, and other extras at a reasonable price.
With this type of insurance, you pay a monthly premium. In the event you cause an accident, your policy will cover the victim. If you sustained damage to your vehicle, you pay a deductible to have repairs made to your own vehicle. The higher the deductible, the lower your monthly premium.
The Secret Cost of Cheap Car Insurance
In the long run, you may end up paying more for getting less. No-name Internet car insurance companies can offer you bargain basement prices because they have no overhead. That also means they don’t have anyone in customer service if you have an accident and need to file a claim. Remember, if you cause an accident and only have the basic minimum requirements, you could end up paying thousands of dollars out of pocket for bodily injury claims and property damage.
How to Make Affordable Insurance Cheaper
There’s no reason why you shouldn’t work with your insurance agent to make your affordable car insurance cheaper. Bundling policies, getting a safe driver discount, multi car discounts, and previous insurance discounts can all work in your favor to reduce your monthly premiums.
As in life, you get what you pay for when it comes to auto insurance. Fortunately, not all auto insurance companies are created equal. Working with an agency such as Lincoln Insurance Agency in Chicago can help you reduce your monthly premiums while maintaining adequate coverage to keep you protected. Make sure the insurance company you choose has been in the business for a long time. Insurance agencies, especially Internet-only companies, come and go so it’s important to ensure you select a company that is well established.