We get it. You’re shopping for car insurance and thinking, “Man, this is pretty expensive. I think I’m just going with the cheapest one – I’m broke!”
That’s an understandable strategy, but is it the smartest one? You might save some money in the short run, but the coverage gaps in a cheap car insurance policy have the potential to make you more broke than you already are.
How a Cheap Policy Can Cost You More Money
- Fixing or replacing your car. Policies with minimum coverage generally do not cover repairs if you get into an accident. And, if your car is beyond repair, you may have to replace it.
- Renting a car or ridesharing. While your car is out of commission, you may have to rent a car. However, car renting can be expensive, so ridesharing with Uber or Lyft could be a cheaper option, although it can add up – and not be available in your area. Public transportation, walking, biking – or pony riding?! – may be your next best options until you have a vehicle again.
- Covering someone else’s medical bills. Depending on your insurance and the severity of injuries, you may be responsible for someone else’s medical bills. Good insurance policies usually cover $500,000-$2 million in medical bills, but a budget policy covers about $10,000-$30,000.
- Paying up-front deductible costs. Unfortunately, cheap policies can require you to pay a large amount before the insurance kicks in. And, you may need to pay for costs beyond your deductible up front and wait to be reimbursed.
- Waiting for customer service to reimburse you. Time is money, and unfortunately you might spend a lot of it talking (or waiting to talk) to a customer service agent. Budget insurance companies likely keep a lean staff and don’t want to give out too much of its budget-sized revenue, so it might be a bit before they get back to you.
Still Think You’re too Broke?
As you can see, although you might think you’re too broke for a “decent” car insurance policy and want to save money in the short run, your budget policy might make you even more broke than you are right now.
Unfortunately, this situation doesn’t change the fact that great insurance is more expensive. What to do?!
A great solution is to talk to a private insurance company like Atlantic Insurance. We can work with you to create a plan that fits your “brokeness” level – without the risk of becoming truly broke that comes with a budget plan. Learn more about how an independent agent can help save you money.
Does this sound like a good solution for you? Contact Atlantic Insurance for a quote that will work for you!