Busted!!! Effects of Cheap Auto Insurance Your Company Hides
Updated: Sep 19, 2020
You must always be careful when people are trying to sell you something. Advertisers use appealing techniques that can mislead us. In the insurance world, they come up with all sorts of things. They say “get the best insurance plan” or “get the cheapest rate”. They draw you in by promising “an inexpensive plan to cover your family.’’ However, these companies don’t let you in on the entire truth of your insurance.
Knowledge is Power
There are basic limits to what insurance may cover. If you do not have the knowledge, you could be victimized by the propaganda. The insurance might be cheap, but when you take a closer look at it, does it cover what you need it to? This article highlights some auto insurance problems to give you a proper insight into the insurance packages. You will understand why you should opt for “standard insurance” and not “cheap insurance.”
Your Income Is on the Line
In most states, all drivers are expected to purchase liability coverage, which amounts to the minimum standard set by the state. For example, if the minimum liability set by your state is about $15,000, you could think this standard is high. If you run into a driver whose insurance is $45,000 what do you think would happen to the rest of the unpaid bills? Will your company still cover that for you? The answer is no! The court presiding over this case would order the turnover balance of $30,000 to be taken from your savings or your assets.
Situations like that can be avoided for as little as an additional $30 per month. Depending on your insurance policy, you can increase your liability so your company covers you up to a higher amount. Make sure your “cheap” life insurance policy doesn’t
cause you an “expensive” financial burden.
High Costs from Buying Cheap Cars
When you buy a car, you estimate your insurance by the cost of purchasing your vehicles. You might think that a cheap car will cost less to insure so it is a smarter decision. This is incorrect. Even a car you buy for $2,000 needs the standard amount of liability coverage. Without it, the effects could be catastrophic. What if you get into an accident with a far more expensive car and seriously injure the driver or any other person? The medical bills and the cost of fixing the vehicles can outweigh even the cost of your car and insurance.
So, why would you risk it by opting for lower plans or cutting corners on your auto insurance policy? You should carefully reconsider dropping your comprehensive policy just because it costs a bit more monthly. Without this backup policy, if your car is stolen or vandalized, you’ll have to pay out of your pocket to replace it.