Why the Cheapest Car Insurance Policy is Dangerous

The 21st century economy is fraught with risk, mostly from the ever-evolving litigious nature of modern society. With these mounting uncertainties, it becomes even more critical than ever for consumers to educate themselves before making final decisions as to how one spends their money each month.

Most consumers are forced to make educated decisions when deciding how to allocate their family’s disposable income each month. Very often, when faced with some tough choices, consumers must begin to search for ways to save money, to stretch a dollar a bit further.

For most consumers, this usually involves finding services/products to meet their needs, but at a reduced cost.

Among the more popular ways to reduce the cost of operating an automobile is to look for cheaper options with regard to auto insurance coverage. However, before one decides to reduce the amount of auto insurance, they need to make sure they understand the answer to the questions –

• Is cheap car insurance worth it?
• Is cheap car insurance good or smart when trying to meet budgetary constraints?

The reality is the answers to these question sreveal that choosing to insure one’s vehicle with cheap car insurance can become a risky decision. Let’s review why the cheapest car insurance policy is dangerous to the insured individual who has made the decision to reduce automobile insurance coverage?

Considering the risks, is cheap car insurance worth it?

While there are some decisions to save money that are prudent, reducing the amount of car insurance you carry to save money exposes the driver (and the passengers and other drivers) to risks that are very real and significant. 

When it comes to insurance (or anything else in life for that matter), you simply get what you pay for. In other words, the cheapest insurance policies will likely have the least coverage and the lowest coverage limits in the world of insurance.

The Risks Created by Choosing Cheap Car Insurance

Making a conscious choice to reduce your car insurance coverage to save money simply creates additional risk. Here are a few examples of the dangers created by choosing to insure your vehicle with cheap or insufficient insurance coverage –

• At some future date, potential earnings and/or assets are exposed to potential lawsuits from future events.

• Even a small ding or scratch on your car will be very costly to repair.
• Without comprehensive insurance, a stolen/vandalized automobile will have to be replaced/repaired by the owner.
• Medical expenses will not be covered if an uninsured driver (or you, as an uninsured driver) causes injuries.
• Dropping uninsured motorist insurance coverage exposes car owners to additional risk.

Note that many states set forth minimum limits of insurance coverage through state law, which, in reality, are the bare bone basic minimums. It is important to note, however, beyond those minimums, car owners have a bit of latitude when it comes to selecting the car insurance coverage that they believe they need and they can afford.

Ways Drivers Can Reduce the Cost of Car Insurance Without Reducing Coverage

Insurance companies offer discounts to car owners, which may help reduce insurance costs without compromising the amount of automobile insurance coverage. Insurers typically provide discounted rates for customers who –

• Insure more than one car, or combine their home and car policies with the same company.
• Complete a defensive driving class, which is very often available online and affordable.
• Increase their policy’s deductibles to reduce premiums.

The Bottom-Line

Choosing to reduce one's car insurance coverage as a means to save money may seem like a wise financial decision at the moment; however, it also creates additional exposure to risk for the driver and their passengers each time the car is driven.

There are many ways for the insurance professionals at Alpine Castle Lake insurance can help motorists and car owners meet their budgets while maintaining ample car insurance coverage. Check out our instant quote tool, send us a note by email or give us a call at 208-552-2100 – we would love to hear from you!

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