Cheap car insurance habits that could cost you more in the long term!
The minimum liability auto insurance doesn't stand up to the potential hazards of car ownership. Let’s examine why that’s the case and parse through the fine print to see why it's just not worth it.
1. While an insurer will check your driving record once a year or every other year, cheap policies may check every six months.
2. If you have moving violations on your driving record, this triggers vigilance on the part of those insurers offering a cheap fix. They’ll wait until they find something then raise your premiums.
3. Accidents can lead to lawsuits. Don’t count on your cheap, nonstandard policy covering you if you’re found to be at fault in court. You could be on the hook to pay punitive damages which are costly.
4. Anyone who owns a car knows that repairs aren’t cheap. A cheap policy may factor in depreciation as part of its payout. That means you’re only paid out for a portion of the cost of repairs.
5. Other drivers? Teenage drivers may be excluded, especially if they’ve got a moving violation on their record. You may not even be able to lend your car to relatives and friends if “permissive” drivers (people you allow to borrow your car) are excluded. Some common exclusions are drivers under the age of 25 or 21.
While there’s quite a lot of variance involved in nonstandard car insurance policies, the common thread is limiting your coverage in multiple ways can wind up costing you more money. When you shop for car insurance, make sure you're properly insured.
At ABCO, we’ve been creating solid car insurance policies for drivers since 1979. With accessible pricing and comprehensive coverage, be confident about where you stand, with no secrets in our fine print to trip you up later.