Beware Of Budget Car Insurance
Post date: March 8th, 2010 |
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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.
Most of the insurance companies that are offering budget car insurance will only supply you with the legal amount required by your state. This coverage amount usually involved the insured being the one who foots the bill for repairs in the event of an accident.
The state minimum is considered liability insurance and this means that if you are involved in an accident that is considered to be your fault any of the repair costs to your vehicle as well as any injuries you suffer will be your financial problem not theirs. If others are hurt in the accident the insurance may not be adequate to pay for their medical bills and you will be required to pay the excess.
If your vehicle is damaged due to hail or high winds or even vandalism the car insurance coverage will not cover the costs. This damage may not be your fault but the insurance does not cover it. This holds true as well if you are at fault for an accident that does not involve another vehicle. If you hit a guardrail or take down a tree you will not only be required to pay for your vehicles repairs but for any damages you caused during the accident.
Many drivers on the road will have this budget insurance and what it means to you is if you are using the similar type insurance is that you pay for what their insurance company will not, even if it is their fault. There is no coverage offered for underinsured motorists or uninsured motorists in these cheaper policies. This means that any type of accident, your fault or not could cost you thousands of dollars and risk you losing your valuable assets.
If you vehicle is stolen you will receive no coverage for your loss. In most cases you will never recover the vehicle and replacing it will be your responsibility. If you are able to recover the vehicle you will be responsible for the repairs from any damage it may have suffered.
The low deductibles you were promised are simply a scam. There is no claim that would even require you to pay a deductible since you would be paying the entire amount for any and all damaged your vehicle faces. The low deductible amount is just a tactic used to make you think you are getting a great deal when you actually are receiving nothing for your money.
You have to have insurance to drive legally in any state and this is what the budget insurance companies are using to their advantage. They offer the minimum requirement to keep you legal but they do not offer anything to keep you safe.