While you never want to pay too much for insurance, you don’t want to spend money on inadequate coverage just because it is the cheapest policy. If you don’t buy coverage that will protect you when you need it, you could pay significantly more than you saved each money in premiums.
You Get What You Pay For
Most people are familiar with the concept of getting what you pay for. When you buy cheap insurance, you generally get low coverage limits and/or a policy from a company that may not have your back when you get into trouble. For instance, if you get into a car accident, you could face thousands of dollars in damages if your insurance company denies your claim or doesn’t pay for the damage. The same is true if you only have $10,000/$50,000 coverage in an accident where multiple people have to go to the hospital.
Cheap Policies May Only Cover Liability
A cheap policy may only cover general liability. In other words, it will only pay to cover basic damages if you are responsible for causing an accident or if an accident occurs on your property. However, if something were to happen to your property or the person who caused the damage could not be found, you will be responsible for paying to repair the damage. Adding comprehensive car insurance or full value coverage for your home will cover you in a variety of situations that you may not anticipate happening. For only a few extra dollars a month, you could save hundreds or thousands of dollars if you need to make a claim. Uninsured Motorist coverage could also save you from having to repair your car out of pocket.
Lower Costs Without Sacrificing Quality
There are many ways in which you can lower your insurance costs without lacking in coverage. For instance, you could opt for a higher deductible or look for discounts for not having an accident in the past six months. Discounts may also be available to those who take driver education courses or who have recently gotten married.
When shopping for coverage, the last thing that you want is to leave yourself exposed financially. While you may think that saving $15 a month is worth it, you won’t have that same feeling once you realize that you aren’t covered for as much as you need to be or as much as you thought you were. Contact our firm to learn more.