The Lowest Cost Insurance Isn’t Always Your Best Value

Category: Auto Insurance

Choosing the lowest cost insurance can be a very tempting proposition – no one wants to spend their hard earned money on coverage if they don’t have to. Unfortunately, the lowest cost insurance doesn’t always provide the protection you need, especially if you are involved in a serious accident or suffer a severe loss.

Low Cost Insurance May Cost You in the Future

While cut rate insurance may save you money on your rates, the limited protection these policies often provide may end up costing you a great deal of money out of pocket in the event of an accident or loss.

Many of these policies offer limited protection against the costs of an accident, including:

• Medical care: Serious accidents can lead to severe injuries and very expensive medical care. In many cases, cut rates policies offer limited coverage for injuries, leaving you holding the bill for any additional costs.

• Property damage: Vehicle repair costs can add up quickly – even a minor fender bender can result in thousands of dollars in damage. If your cut rate policy has a low property damage limit, you may have to cover the remaining balance of car repair or replacement out of your own pocket.

• Liability: If you are found liable for an accident, you will be held responsible for any resulting damages. Unfortunately, if your insurance coverage offers limited liability protection, you may find yourself paying the other party’s medical bills and property repair costs yourself.

State Requirements versus Peace of Mind

Vehicles registered in the state of New York must carry liability insurance by law. While it may be tempting to simply purchase the minimum required coverage, you may not be buying the actual protection you need.

Our agents advise against buying the minimum insurance, much like we advise against cut rate policies – you simply are not buying the coverage necessary to combat the costs of an accident.

Rather than purchasing the lowest cost insurance, we think it is important to buy the coverage you require, and then explore all money-saving opportunities available to you. For example, you may save money on your car and homeowners insurance by purchasing them from the same provider.

The savings you gain from policy discounts may even help you gain the protection you need, at rates that are not that much higher than cut rate policies.

In your opinion, what are the dangers of buying a cut rate insurance policy, or purchasing the state required minimum coverage? Share your thoughts below.

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