When shopping for auto insurance, many people simply look for the cheapest policy available, and click "buy." While this approach may save you money upfront, it is not usually the best choice, or even the most affordable choice, in the long term. Here are some of the downfalls and challenges you may face if you simply buy the cheapest auto insurance policy available.
1. Hard-to-reach service.
If you buy insurance from one of the low-cost, internet-based companies, you might end up regretting it the first time you have to file a claim. Some of these companies are harder to get ahold of than companies that maintain local offices. You don't want to have to wait a day for the insurance company to return your call when you need medical treatment after an accident. It's worth paying a little bit more for a policy from a company that you know is reliable and easy to communicate with.
2. No collision coverage.
Almost all states require you to carry liability insurance on your car, which is coverage that will pay for damage to other drivers, their cars, and properties if you are at fault for a crash. What they do not typically require is collision coverage, which covers damage to your own vehicle. If you find a really cheap policy, there is a good chance it does not include collision coverage. This means if you get in a crash that is your fault, you will be on your own to pay for any repairs. If your car is destroyed, you'll have to buy a new one entirely out of pocket!
3. Low personal injury coverage.
Medical bills are often the most expensive consequence of a car crash. You can only cause $20,000 in damage to a $20,000 car, but medical bills can be $200,000 or more! The cheapest policies often offer the bare minimum of personal injury or medical coverage, which is $25,000 in some areas and $50,000 in others. If you cause a crash and the medical bills are more than this, you'll have to pay for the remaining costs out of pocket, which can be backbreaking. It's worth paying more for a policy that offers $100,000 or $200,000 of coverage.
Buying the cheapest auto insurance available is not always a smart choice. Always make sure the company offers good service, and that the policy offers ample collision and personal injury coverage.