When it comes to cheap auto insurance, do you get what you pay for?

These days, we’re almost always looking for a bargain – cheaper gas, buy-one-get-one-free sales, extreme couponing, etc. And even though getting something for less may not make it better, it certainly makes it more satisfying.

But what about when considering what auto insurance to get? Will the cheaper option still be more satisfying?

While there are definitely ways to save on your auto insurance, cheaper coverage isn’t necessarily better coverage. In fact, it rarely is. That’s because, when it comes to auto insurance, you really do tend to get what you pay for, and choosing the cheap option can be incredibly detrimental when it really counts.

Here are three reasons why:


1. Because cheap coverage often means less protection.
Each state has a minimum requirement for insurance. You can certainly save money if you go with that minimum instead of paying for extra coverage, but you’ll likely regret it when it comes time to make a claim because you’ll have far less protection than you would with a more comprehensive plan.


2. Because high deductibles mean more expenses.
The deductible is the amount of money you’ll need to pay out of pocket before the insurance company will pick up the claim. For example, if your claim is for $2,500 and you have a $1,000 deductible, you’ll have to pay the first $1,000 and the insurance company will pick up the remaining $1,500. A higher deductible will indeed save you money on your monthly insurance payment, but it will also mean a much higher bill when it comes time to make a claim.


3. Because lower limits mean higher liability.
Insurance companies put pre-determined limits on the amounts they’ll payout in the event of various types of insurance claims. Those limits can be raised or lowered, based on how much you want pay per month – the lower the limits, the lower your monthly payment. But, like with a lower deductible, the savings from having lower limits could be quickly wiped out in a single accident if your low limits are exceeded.


These are a few reasons why paying a little more for auto insurance can pay dividends when it actually comes time to make a claim. But that doesn’t mean you should have to pay a ton for your insurance either. There are still ways to get great coverage and save some money at the same time. Many insurance companies offer safe driver discounts, multi-car discounts, multi-policy discounts, and more. Ask your insurance agent how to take advantage of these offers, and get the most out of your insurance without paying too much.

New Car Research

Find vehicle reviews, photos & pricing

our instagram

get Automobile Magazine

Subscribe to the magazine and save up to 84% off the newsstand price

subscribe

new cars

Read Related Articles

TO TOP