The Risks of Buying Cheap Auto Insurance

The Risks of Buying Cheap Auto Insurance

Auto insurance companies profit billions due to driver’s buying cheap insurance. Its a fact of life in the 21st century. Everyone is doing it and online shopping has made it worst with competitive pricing. But the real question is, can you trust cheap car insurance?

It’s definitely tempting to buy cheap auto insurance online, but at the AZ Hometown Law Firm, we’ve seen it go wrong too many times, as accident victims lose out on compensation. After seeing drivers who have tried it once and have gotten burned, we think that buying cheap online car insurance is about as appealing as buying grocery bought sushi. It could end up leaving you sick to your stomach!

Should I Buy Cheap Auto Insurance Online?

When you buy cheap auto insurance online, you aren’t getting a quote from an experienced agent on a custom-tailored insurance plan. You’re picking options out of a list, checking out, and hoping for the best. But we all know that saying, if it’s to good to be true, it probably isn’t. Although the price might be good, there are some reasons why very cheap car insurance can back fire.

Coverage Isn’t Clear

When you buy cheap online car insurance, you’re picking options out of a list without much explanation as to what the options do for you. You need insurance that is determined by your vehicle, your financial situation, and the recommendations of an expert. When you make a decision without expert input, you might wind up missing something BIG. Picking your own insurance coverage at random is like defending yourself in court — risky! Learn more about the difference between full tort and limited tort.

No Help is Available

In order to legally provide advice or recommendations on insurance coverage, you NEED to be a licensed insurance agent. The people manning the phones at a cheap online car insurance company are most likely not licensed agents and therefore CAN’T advise you even if you ask them too. This leaves you trying to make a challenging and potentially huge decision alone.

You’re at Risk for Being Underinsured

Frequently when we take a look at a driver’s online-purchased policy, they have holes in their coverage that could cost them big time. For example, we often see policies that are seriously lacking sufficient liability, which can leave you personally facing a HUGE lawsuit if you injure someone in an accident. While saving a few dollars per month is nice enough, going into debt to cover a million dollar lawsuit is not worth it.

Uninsured or Underinsured Driver Risks

In addition to the threat of being liable for someone’s injuries relating to your own driving, some very cheap insurance plans can leave you without coverage to deal with an uninsured driver. This can leave you without a vehicle — or answers — for potentially months on end. While you’d rather everyone be responsible, there are uninsured drivers out there — and it’s smart to be prepared.

You Could Miss Out on Valuable Extras

When most people buy cheap car insurance online, they’re shopping for the price tag and totally missing the options that save them way more money long term. Car insurance extras — like first accident forgiveness, total vehicle replacement coverage, and income loss coverage — can be crucial for protecting your financial health. However, very cheap insurance plans never have the room to include these options.

If you’ve been involved in a car accident and are unsure of you’re insurance coverage, contact the experts at AZ Hometown Law Firm at (602) 495-1005. We got you covered, even if the insurance companies don’t.

CREDIT: Unruh Insurance

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