As your parents always said, you get what you pay for.
In life, there are plenty of places to cut costs. Saving money on groceries and entertainment is risk-free.
One place you may want to avoid cutting costs is on your car insurance. While budget car insurance is more affordable, it may do more harm than good.
Keep reading to learn 5 reasons why budget car insurance may not be your best bet.
#1. Minimal coverage equals minimal protection.
On the surface, budget car insurance seems ideal. You’re spending less money but you’re still covered.
But, on paper, cheap car insurance isn’t as good as it sounds. Buying car insurance that just meets your state’s minimal liability coverage threshold can save you money.
But, are the savings worth potential claim issues in the future?
If you were to get into an accident, what will your insurance claim? Odds are not very much. This means you’ll be responsible for paying costs out of pocket.
At the end of the day, saving money on car insurance may mean spending more in the future.
#2. Lower limits mean increased liabilities.
Car insurance limits seem so high. Some are more than $500,000! You couldn’t imagine causing that much damage to a car.
Getting the car back to working order is costly. But getting a car looking as good as it did pre-accident costs even more money. Dent removal and paint repair can cost a pretty penny.
The lower limits you have, the more increased liabilities you are responsible for. Can you imagine the cost of getting into a small accident with an expensive Aston Martin?
Cars aside, paying for medical bills because of an accident is also expensive. In fact, the average auto liability claim for bodily injury is about $15,400.
#3. Higher deductibles mean more money out of your pocket.
Raising your deductibles will reduce your insurance bill each month. However, higher deductibles mean increased claim costs.
You could end up paying up to $1,000 out of pocket to file a claim. That $1,000 would have been much better spent towards a lower deductible policy.
At the end of the day, the couple dollars you saved each month are nothing compared to claim costs.
When it comes to insurance, think about the what ifs. Typically spending more up-front means fewer issues in the future.
#4. Budget car insurance may mean poor customer service.
Your car insurance is only as good as the insurance provider.
What good is a car insurance company if they don’t offer around the clock service? What’s the purpose of having car insurance if the company takes months to process a claim?
Sometimes cutting corners with insurance also means cutting customer service quality.
A customer-focused insurance company.
At Amistad Insurance, we know the importance of quality insurance. No one wants to pay for insurance each month that doesn’t help them in a time of crisis.
Do you want car, home, and renters insurance that you can count on? If so, Amistad Insurance is the company for you. We value our customers and strive to provide quality insurance.
Don’t settle for sub-par insurance any longer!
Contact us today to learn about the insurance we offer.