Checking Your Budget: How Much is Cheap Car Insurance Worth?

You might think that you’re saving money by getting a cheap car insurance. However, is that really the case?

Living in the city does not come cheap; there are a lot of bills to paid, and they could easily eat up more than half of your earnings. Thus, it’s understandable how some people would jump to take any opportunity to save money.

Getting a cheap car insurance might sound good, but is it enough to protect you? When it comes to getting insurance, you have to be able to differentiate what’s affordable to what’s cheap. Here’s what you’ll probably get when choosing the cheapest options.

  1. Insufficient coverage

Cheap car insurance is also known as “liability-only” insurance and used by owners of cars which are second-hand or too old. These can’t cover most of the damages to your property as a result of an accident. When you make your claims, you get too little help. In fact, it’s almost no different from not being insured at all.

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  1. Not in line with the law

Each country sets their own minimum car insurance limit. Everyone with a car needs to comply with these limits. Thus, a lot of car insurance companies does not offer cheap coverage as it will not be enough to comply with the law.

Laws set on car insurance limit exist because no matter how careful a driver is, there will always be a possibility for accidents to happen. The insurance’s function is to help you and the people who might be involved in the incident cover the costs.

  1. High Personal Cost

If you pay less for your insurance, you can expect to get less coverage. This is good if you’re 100% sure you’ll never be in an accident. However, you can’t have that assurance. If you end up causing damage to yourself, your property, or other people and their properties, you’ll find yourself paying for most of the expenses. Again, you’ll have no problem with this if you have lots of money stored in a bank. If you don’t, then it’s better that you invest in good coverage.

  1. High risk

Anything offered too cheaply is always suspicious. If you think that you’re getting a deal that’s too good to be true, then perhaps it is not real at all. You should check the background of the agent and the company behind him. You don’t want to end up scammed.

  1. Poor customer support

It’s rare to get the best service with cheap insurance. It’s probable that you’ll be served last whenever you make your claims. After all, they have to attend to more important customers who pay more than you do. While this is not true for some companies, you’ll find it is the case in most of them.

Final Thoughts

Being a smart consumer does not mean you get the cheapest offer on everything. What you need to get is the best option that fits your budget. In other words, pick what’s affordable.

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