There are several car insurance companies offering budget car insurance policies. They use tactics like low monthly payments and low deductibles to lure us in. We all want to save money on car insurance but at what cost to our protection? The coverage that is offered with these policies is usually insufficient and will leave you holding most of the responsibility if not all for the cost involved in the accident.
Many insurance companies who offer budget car insurance only give you the legal amount required by your state. The coverage amount generally will be worthless in the event of a claim since the insured will be required to foot the bill for most of the expenses.
Liability insurance offers little protection to you in the event of an accident. If you are at fault you will be responsible for any damages that your vehicle suffered as well as your own medical costs if any. Your coverage may not be enough to cover repairs to the other vehicle or to cover the medical costs from their injuries. This means that you will be financially responsible for any of this excess and risk losing your home, savings or any assets you might own.
You will be left holding the bill for any damages that occur to your vehicle that are not your fault such as hail, wind storms, or vandalism. The liability insurance will not pay for any portion of damage to your vehicle for any reason. This means that traveling down that icy road in the winter could be very costly to you if you swerve and hit a tree or guard rail.
One of the real fears is being hit by someone who has not enough insurance or no insurance at all. You will not be protected by these motorists and if you are involved in an accident even if it is their fault you could still be liable for most or all of the repairs to your vehicle as well as the injuries you or your passengers might have suffered.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
The low deductibles that are offered to you are useless since you would never even have a claim that would require you to pay a deductible. The entire amount of repair is yours and therefore there is no need to pay a deductible at all. This is a tactic used by the car insurance companies offering budget policies to make you think you are getting a great deal when in actuality you are getting nothing.
It is not legal to drive without insurance so the budget car insurance companies designed policies only to keep you legal. They offer no real protection to your property or any of your assets.
