Why Cheap Auto Insurance Doesn’t Always Save Money
If you’re like most safe drivers, you may have a difficult time appreciating how valuable your auto insurance policy is, and it’s tempting to skimp on coverage to save a little money. Unfortunately, too many drivers find out too late that their cheap coverage can actually cost a lot of money in the long run.
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3 Hidden Drawbacks of Cheap Auto Insurance Coverage
#1: An Accident Can Be Financially Devastating
Car accidents can be expensive, and your auto insurance policy is your best protection against financial devastation if the unexpected happens. While state-minimum coverage is definitely better than no coverage at all, a high percentage of scenarios shows it’s not enough for most drivers.
What If You are Responsible for an Accident and Your Vehicle Is Damaged
Bare-bones liability only coverage only covers the other person if you are responsible for an accident. It does not include comprehensive or collision coverage, meaning that if your own vehicle is damaged or totaled, you’ll have to replace it or repair it completely out of your own pocket. It won’t pay for your medical bills or lost wages or pain and suffering if you are responsible and only have state minimum liability.
Your Liability Coverage Isn’t Good Enough
In Nevada, drivers have to carry liability coverage that includes:
- $25,000 for bodily injury for one person in any one accident
- $50,000 for bodily injury for two or more people in any one accident
- $20,000 for property damage in any one accident
While this sounds like a lot of money, if your responsible for an accident that seriously injures several people or if there are $40,000 in car repair expenses, you’d be financially responsible for any expenses beyond your policy limits.
#2: You May Not Be Able to Afford Your Deductible
Choosing a high deductible makes sense for a couple of reasons. First, it discourages you from filing small claims that may drive up your premium in the future. Second, because you are less likely to file a claim, you are less “risky” to insure, and you will typically enjoy a lower rate.
But what happens if you get into an accident when money is tight and you can’t afford your high deductible? Until you can pay your deductible, you will not be able to get your vehicle fixed, or at least out of storage from the auto repair shop.
#3: Your White Lie Could Cost You More
Where you park your car at night can have a big impact on your monthly premium. According to one study, as many as 1 in 10 drivers provide inaccurate address information. While this may be unintentional in some cases, it’s a common tactic that drivers use to fraudulently drive down their monthly premiums. Unfortunately, providing inaccurate information is insurance fraud, which is something your auto insurance provider takes very seriously. You may lose your coverage, have a claim denied, or be charged back premiums at the corrected rate.
Getting High-Quality, Affordable Auto Insurance through Nevada Insurance Enrollment
Shopping for auto insurance can be tricky. Comparing different types of coverage, policy limits and discounts takes a lot of time. At Nevada Insurance Enrollment, experienced auto insurance agents specialize in this very task, making it simple to find full coverage that will not break the bank.
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Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.
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