The Pros and Cons of Cheap Car Insurance

It’s no surprise that millions of accidents happen every year with the number of cars on the road. Luckily, insurance companies offer a variety of coverage options to assist you in the event of an accident. These coverage plans are all priced differently, with many drivers opting to purchase a cheaper plan to save money.

When choosing a cheaper car insurance plan, there are pros and cons that come along with this decision. To learn more about what these pros and cons are, read the article below.


You save money

Obviously, with a cheaper car insurance plan, you’ll save money on monthly premiums. If you aren’t able to afford a high monthly car insurance payment, opting for a cheaper plan may be better. When searching for a new and cheaper car insurance plan, make sure you research the cheapest options available. Some insurance companies, such as Travelers Auto Insurance, are known for having more expensive plans.

It helps you to fulfill the law requirements

It is crucial to purchase an insurance policy as it is mandatory to have it in some states and countries. Driving without car insurance is not only illegal, but it also puts others at risk as well. With a cheap car insurance plan, you can at least have the minimum car insurance coverage required in your state.

You’re still covered

Having a cheap car insurance plan doesn’t mean you’re out of luck if you get into a car insurance plan. In the end, you’ll still have coverage to help you out with minor to moderate car accidents.


Drivers can fail to get their car back after a claim

Drivers with cheap car insurance policies have high chances of remaining without a vehicle after filing a claim. A cheap car insurance plan may not cover everything in the event of a severe accident, leaving the policyholder to use their own money to cover additional repairs. Many people who have cheap car insurance can’t afford these repairs, leaving their car to be scrapped. 

Your coverage doesn’t cover more serious accidents

The liability coverage usually comes with very low limits. Although the experts recommend that you get at least $500,000 of each accident’s liability cover and $2 million for full protection, those cheap policies offer coverage ranging between $10,000 and $30,000 liability for an incident. Moreover, the small limits can easily be exceeded easily, even during minor accidents, with just a few passengers that need costly medical treatment.  

High deductibles

Paying high deductible is another way of lowering the monthly insurance premiums. Having a high deductible means more upfront costs out-of-pocket before insurance coverage begins. For many people with cheap car insurance, having such a high deductible can easily be more expensive than the money they save with a cheaper plan.

Bad customer service

Some insurance companies will only offer better customer services for people with expensive or higher premium policy rates than those with liability coverage only. In the end, a cheap car insurance policyholder will still get the customer service they need if involved in an accident, but they can expect fewer favors.

Cheap insurance policies are good for those who want to save money, but several disadvantages accompany them. If you are going to purchase a cheap policy, you should be ready to cater for the damages and repairs after an accident. This could be expensive, and in most cases, many drivers end up without a car because they won’t afford it.