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The Potential Pitfalls of Cheap Car Insurance

Reading Time: 2 minutes has launched a new study on the problems of cheap car insurance policies:

“Everyone strives to obtain the cheapest car insurance possible. However, getting a cheap car insurance policy has several disadvantages. Policyholders that own cheap car insurance will have to face some tough consequences if they are required to file a claim.

“The disadvantages of a cheap car insurance policy are the following:

  • The coverage can’t be enough. The liability coverage has some really low limits. While experts are recommending to have at least $500,000 of liability coverage per accident and $2 million to be fully protected, cheap policies are offering only $10,000 to $30,000 liability coverage per incident. These small limits can easily be exceeded even in a minor accident with a few passengers that require costly medical treatments.
  • Drivers won’t be able to fix their cars after a collision. Insurance companies will cover the damage inflicted on other drivers, property, passengers, and vehicles if the policyholder only has liability coverage. Liability coverage does not cover the costs to repair the policyholder’s damaged vehicle.
  • Drivers can remain without their cars after a claim. Drivers that have cheap car insurance are more likely to remain without a car after filing a claim. Policyholders that don’t have the money to repair their vehicles after a crash, and their cheap policies don’t cover the costs will probably remain without their cars until they can afford to repair them.
  • Bad customer service. Some insurers will offer better customer support to persons that have expensive policies compared to those that have only liability coverage. Although this doesn’t sound that bad, drivers that are dealing with an insurance claim will need to have good customer support.
  • High deductible. Raising the deductible is one of the most common methods used to lower the insurance premiums. Drivers will pay less on their monthly insurance, but if they are required to make a claim, will have to pay a significant amount of money upfront before the insurance kicks.

“ is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.”

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