Why Cheap Car Insurance is Not Always the Best

June 16, 2019 · Car Insurance, Personal Lines

Blog Why Cheap Car Insurance is Not Always the Best

At Hennessey, Thames & Leavitt Insurance Agency we understand that car insurance premiums are a concern to consumers. Your car insurance policy should be kind to your wallet. However, it should also protect you. Here are a few reasons why the cheapest car insurance out there is not always the best for you.

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Fewer coverages. Increased repair costs.

Choosing your state's minimum coverage requirements will keep your auto insurance on the low side. However, it most likely will not help pay the bill for collision damage to your car. Nor would it step in if it were ever vandalized. Repair costs would come out of your wallet.

  • Minimal limits. Minimal protection. Settling for your state's minimum limits on certain coverages could also save you money upfront. However, you might be surprised by how quickly limits can be reached and surpassed. If you are in an accident, that costs more than your limit, you pay the difference. Out of your own pocket!
  • Higher deductibles. More out of pocket. A deductible is what you pay out of pocket before your insurance coverage steps in. Choosing a higher deductible typically lowers your premium. Just make sure you choose a deductible you can comfortably afford.

Example of a cheaper policy in action

Let us say your bodily injury limit is $25,000. One day you are involved in an accident. You are at fault. If that is not enough, the other driver is injured. In fact, they are looking at medical bills in excess of $100,000.

This means you have to pay the difference of $75,000. Therefore, whatever you saved by choosing a lower limit is now coming back to bite you.

Your car insurance is there to protect you when the unexpected happens. However, if you get the cheapest car insurance possible that protection may not mean much.

Ways to save on car insurance

Just as if you do not want the cheapest car insurance on the market, you also do not want to pay an arm and a leg. Right? Here a few simple ways to save on car insurance:

  • Sign up for a SAFE DRIVING DISCOUNT DEVICE. Get a discount just for signing up. Then drive safely to save even more. The safer you drive, the more you could save.
  • Insure more than one car. A Multi-Car discount on your car insurance saves you money.
  • Own your home. Bundle your home and auto insurance for a discount. Two policies with one company can save you time and money.
  • Rent your home. Not just homeowners can get benefits. If you rent, earn a discount for adding renter’s coverage to your auto policy. It is designed to protect your belongings and safeguard your liability if a guest gets hurt in your home.
  • Pay in one lump sum. Instead of monthly installments, pay your premium all at one.
  • Keep your info updated. Have you installed anti-theft devices in your car? Are you now driving less? Is your teen getting good grades in school or taking a driver’s training class? These are all worth telling your insurance agent about. Each of them could earn you a discount.

So how do you get the cheapest AND best car insurance?

Start here; call Hennessey, Thames and Leavitt Insurance Agency at 1001 Belmont Street in Vicksburg, Mississippi to discuss your car insurance needs. We can be reached by phone at 601-636-5560, email: info-hennessey@leavitt.com. Check us out on Facebook or our website leavitt.com/vicksburg.