If you live in the United States you are faced with the reality that if you want to drive a vehicle, you need to have some type of car insurance. For some people, that can be a debilitating requirement, particularly if they find themselves stuck with an expensive policy. As a result, a growing number of Americans are finding themselves wondering the same thing: Is cheap car insurance worth it?
Unfortunately, there is no easy answer to this question. Yes, cheap car insurance will allow you to legally drive on the road for less money every month. However, you are taking a big risk because if you do get into an accident you are going to be responsible for paying most of those costs out of pocket.
Cheap car insurance policies are cheap for a reason. Most of them require ridiculously high deductibles, usually in the thousands of dollars. That means you are going to have to pay a lot of money before that policy even kicks in.
Many cheaper insurance policies also set stringent usage requirements. For example, you might not be allowed to call into the company if you have any issues, but rather be forced to only communicate through their website. That can be incredibly frustrating depending on how responsive the company is.
It’s important to remember that if you get into an accident without proper coverage, and you don’t have the cash on hand to cover the costs that you can then be sued. That usually results in having your paychecks garnished until you have paid back what you owe.
Yes, paying your monthly car insurance premiums can be a tough pill to swallow, but the truth is accidents happen and if you don’t have the proper coverage the consequences of that accident can haunt you for years.
It’s important that you take the time to research the type of coverage you need and price shop between different carriers. Avoiding super cheap car insurance policies does not mean that you there are not ways to bring down the costs of a perfectly competent policy.
One of the best ways to bring down your car insurance costs is to bundle that policy with others. Almost every insurer offers significant discounts if you bundle different policies together. This is an easy way to save money on products that you know you need to have anyway. Car insurance and homeowners insurance are two of the most commonly bundled policies.
A growing trend to help consumers save on their car insurance costs is offering discounts in exchange for telematic data. That usually involves installing an app on your phone or a device in your car that measures your driving habits. If you are a safe driver, you’ll be rewarded with lower premiums. Of course, if you are a dangerous drive your rates will go up, so be cognizant of your driving habits.
If you want to look into options for lowering your car insurance rates, or purchase a new policy altogether, we suggest reaching out to TGS Insurance. The TGS staff are experts in their field and are always willing to work with you to find the right policy for your lifestyle, and your budget.