Disadvantages of Choosing Cheap Car InsuranceDisadvantages of Choosing Cheap Car Insurance
Car insurance, also reffered as auto insurance, is a legal contract between the insurance company and the car owner that cover the car in the incidence of an accident, theft, or any other peril that may occur to the vehicle. For the insurance company to be able to protect the car from all the foreseen dangers, the car owner is required to pay premiums for the insurance cover to stand. Car insurance protects the vehicle from being damaged, liability in case other people get body injury or property damage caused by the car, and more so medical coverage in the case of treating injuries and, in worst cases, funeral expenses.
Gap coverage, Comprehensive coverage, Collision coverage, and Full coverage are but a few car insurance coverages. Due to the availability and flexibility of various coverages, car owners can choose what kind of coverage works for them and which they are comfortable in, depending on their financial muscle and the amount of the premium they are supposed to pay. Because of this, many cars insurance companies, such as lexham insurance, have been developed to provide insurance services, thus creating insurances that are cheap and expensive. Car owners can review websites that contain car insurance-related information to learn more. AXA is one of the top five best insurance companies, which is worth looking into in car insurance matters. Though car insurance is essential, below are the cons that one will experience in case they choose cheap car insurance:
1. Car owners won’t be able to depose their cars after collisions.
When a vehicle owner chooses cheap car insurance, the insurance policy will not be able to cover all the damages that may happen in case an accident occurs. Though having cheap insurance has the perks of not paying high premiums, it may be costly in the long run-in case a collision happens. Liability coverage is one of the car insurances that takes care of the cost and damages that may occur to other property, cars, passengers, and other car owners. Due to this, cheap car insurance will not cover the liability coverage fully, and the owner won’t be able to fix the car, thus a double loss.
2. The indemnity (coverage) won’t cover more severe damages.
Cheap car insurance is disadvantageous in that when a significant accident or a minor accident involving passengers occurs, the insurance will not be able to bear the risks since the limits will have been exceeded. The amount of risk the insurance covers depends on the amount a car owner has invested in premiums always paid yearly. Due to this, it is essential and recommended that one spend a minimum of 500,000($) per accident to cover the vehicle against damages or loss fully. By paying less than $50,000 per accident, it guarantees you small limits that cannot handle much if any damages happen.
3. Poor Customer service.
A car owner who chooses a cheap insurance policy is likely to have and experience lousy customer service from the insurers since the insurance companies tend to treat car owners with expensive policies better than the former. Liability coverage is linked with cheap car insurance since it can only take care of the damages that happen to other persons and property and not the car itself. Though it is an issue that can be light, every car owner needs to experience good, if not the best, customer support from the insurers.
4. Huge deductibles.
A deductible is a stipulation, in this case, a car insurance policy that eases the insurer (the company offering the insurance) for an initial specified loss of the kind insured against. It also always reveals the amount of loss specified in that section. High deductibles are among the common ways to lower the amount paid for insurance premiums. The car owners are permitted to spend less on their yearly and monthly insurance; however, if they make a claim, they have to incur an eloquent amount of cash upfront before the insurance takes over. This is one of the problems associated with taking cheap car insurance and may make you spend a lot more than you could have spent if one can choose quality car insurance.
5. Drivers can remain carless after a claim.
Having a cheap insurance cover as a car owner can make to remain without a car in the event of making a claim. When the car owners do not have the cash to fix and repair the motor vehicle after an accident and the cheap covers, they took can’t cover the expenses, they will end up without a car till they get the money to repay the vehicle. One can easily avoid this setback by simply choosing car insurance that can cater and cover everything in case a crash or an incident happens.
In conclusion, as the famous adage states, “Cheap is expensive,” hence choosing a cheap insurance cover might seem the right thing to do. Yet, it is much more expensive as opposed if you could choose a quality and comprehensive car insurance and above are the reasons why.