We all would like more affordable car insurance. You will find several budget car insurance companies attracting customers with promises of low monthly rates and ridiculously low deductibles. You should know that the type of coverage they are offering you for these low rates is insufficient coverage and will mean more out of pocket cost to you when filing a claim.
Most of the insurance companies that are offering budget car insurance will only supply you with the legal amount required by your state. This coverage amount usually involved the insured being the one who foots the bill for repairs in the event of an accident.
Liability insurance offers little protection to you in the event of an accident. If you are at fault you will be responsible for any damages that your vehicle suffered as well as your own medical costs if any. Your coverage may not be enough to cover repairs to the other vehicle or to cover the medical costs from their injuries. This means that you will be financially responsible for any of this excess and risk losing your home, savings or any assets you might own.
If your vehicle is damaged due to hail or high winds or even vandalism the insurance coverage will not cover the costs. This damage may not be your fault but the insurance does not cover it. This holds true as well if you are at fault for an accident that does not involve another vehicle. If you hit a guardrail or take down a tree you will not only be required to pay for your vehicles repairs but for any damages you caused during the accident.
Many drivers on the road will have this budget insurance and what it means to you is if you are using the similar type insurance is that you pay for what their insurance company will not, even if it is their fault. There is no coverage offered for underinsured motorists or uninsured motorists in these cheaper policies. This means that any type of accident, your fault or not could cost you thousands of dollars and risk you losing your valuable assets.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
The low deductibles you were promised are simply a scam. There is no claim that would even require you to pay a deductible since you would be paying the entire amount for any and all damaged your vehicle faces. The low deductible amount is just a tactic used to make you think you are getting a great deal when you actually are receiving nothing for your money.
It is not legal to drive without insurance so the budget car insurance companies designed policies only to keep you legal. They offer no real protection to your property or any of your assets.
Most of the insurance companies that are offering budget car insurance will only supply you with the legal amount required by your state. This coverage amount usually involved the insured being the one who foots the bill for repairs in the event of an accident.
Liability insurance offers little protection to you in the event of an accident. If you are at fault you will be responsible for any damages that your vehicle suffered as well as your own medical costs if any. Your coverage may not be enough to cover repairs to the other vehicle or to cover the medical costs from their injuries. This means that you will be financially responsible for any of this excess and risk losing your home, savings or any assets you might own.
If your vehicle is damaged due to hail or high winds or even vandalism the insurance coverage will not cover the costs. This damage may not be your fault but the insurance does not cover it. This holds true as well if you are at fault for an accident that does not involve another vehicle. If you hit a guardrail or take down a tree you will not only be required to pay for your vehicles repairs but for any damages you caused during the accident.
Many drivers on the road will have this budget insurance and what it means to you is if you are using the similar type insurance is that you pay for what their insurance company will not, even if it is their fault. There is no coverage offered for underinsured motorists or uninsured motorists in these cheaper policies. This means that any type of accident, your fault or not could cost you thousands of dollars and risk you losing your valuable assets.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
The low deductibles you were promised are simply a scam. There is no claim that would even require you to pay a deductible since you would be paying the entire amount for any and all damaged your vehicle faces. The low deductible amount is just a tactic used to make you think you are getting a great deal when you actually are receiving nothing for your money.
It is not legal to drive without insurance so the budget car insurance companies designed policies only to keep you legal. They offer no real protection to your property or any of your assets.
About the Author:
Susan Reynolds is the webmaster for a leading South African Insurance provider who specialises in Car Insurance.
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