Research indicates that, across the United States, 13% of drivers are uninsured, and an even larger percent are underinsured.
"Underinsured" refers to motorists who have insurance coverage, but not enough coverage to pay the entire cost of a claim if they get into an accident. While drivers may save money on a monthly basis by choosing lesser coverage, being underinsured can be costly in the long run.
Do you know whether your budget car insurance provides enough coverage in the event of a collision? Let's take a closer look at the details.
Cover Your Car
One of the main functions of insurance is to cover the cost of your car if it is damaged or stolen. Some drivers who drive an older vehicle may be tempted to save money on their insurance premiums by dropping what is called comprehensive coverage on their vehicle.
Their reasoning is that, if they damage the car, they will pay for repairs out of pocket anyway. Since the car isn't worth much money, why pay to insure it?
What many folks don't realize, however, is that comprehensive coverage also covers costs if your car is stolen, or damaged in a storm. Keeping this coverage is a good way to protect your interests.
Protect Your Passengers
The most important cargo your vehicle transports is yourself and your loved ones. So, considering that more than 20 million people are injured in car accidents each year, you want to make sure you have coverage to care for their injuries if something happens.
Make sure you have coverage for uninsured and underinsured drivers as well. This will protect you if someone hits you but does not have the coverage to pay for your healthcare costs.
Your car and your body are not the only factors you are protecting with your insurance policy. You are also protecting your interests against legal action.
If you are in a car accident where the fault is disputed, the other party can sue you for property damage, bodily injury, and pain and suffering. If you find yourself in this situation, you will be happy you chose a good policy with a well-trained legal team to defend you in court.
Good Ways to Save on Car Insurance
As you can see, taking out a bare-bones policy isn't always the smartest way to save on insurance coverage. Luckily, there are options that can help you save without sacrificing the protection you need for you and your family.
For instance, if you own a home, you can consider bundling your automobile insurance with your homeowner's insurance for a discount. You may also be able to get incentivized discounts for things like good driving, good grades, or length of time spent with a company.
Step Up Your Budget Car Insurance Today
While it is necessary to choose insurance coverage that is affordable, it's easy to see how many companies that offer so-called budget car insurance are barely providing any coverage at all. Luckily, at Amistad Insurance Services, we can connect you with an insurance policy that is both affordable and sufficient.
Ready to get started? Contact us today to get a free quote.