Your discount car insurance might have some serious hidden costs.
No one wants to pay more for their auto insurance than they have to; so, it’s no surprise that many drivers look for the cheapest policy options available. However, buying cheap or minimal car insurance can cost far more than you anticipated in the long run. Here are some of the hidden costs that come with buying cheap car insurance.
Your Vehicle Repairs and Medical Fees
Most states require you to carry liability insurance to cover the damages and injuries you might cause to others. However, this type of insurance does not extend coverage for your own repairs and medical expenses. If you are at fault for an accident and have chosen a cheaper, liability-only policy, then your insurance will not cover any of your own expenses. This in turn will place the financial burden solely on your shoulders.
Imagine a scenario in which you got into an accident and the other driver experienced extensive injuries. The injured party might be awarded a considerable settlement at your expense. If this settlement exceeds the limits of your discount liability coverage, then a judge can garnish your wages. This means that you will have to hand over a chunk of your income every payday to cover the cost of the settlement.
While most carriers provide coverage for you, family members, and friends who have access to your vehicle, this might not be true if you have minimal or cheap car insurance. In some cases, discount policies will limit coverage to the policyholder alone. This means that if your friend got into an accident while operating your vehicle, you will be on the line to pay for your repairs and injuries and for any damages sustained by the other party.
These are some of the ways in which your cheap car insurance might be more expensive than you realized. Instead of relying on minimal coverage, make sure you find a policy that offers you the coverage that you actually need. To find the right policies to fit your budget and coverage needs, contact the professionals at Weaver & Associated. Located in Arcadia, California, we are ready to get you covered today.