Everyone loves to save money. Discounts are becoming a popular way to live. Many companies present themselves as being the same as larger, more costly companies but with lower rates, and more reasonable terms. This discount price comes with a cost. The cost of auto insurance is often not noticeable until you file a claim.
Just like other insurance companies, discount auto insurance has specialized personnel to eliminate fraudulent claims. Because of the limited resources available to cheap auto insurance companies, legitimate claims can be left unattended for months. This can mean that you may not have the funds to repair your car or transport your vehicle for months. Many states require that accident damage be repaired to an acceptable level before they can pass a state inspection. If an insurance company doesn’t review a claim within a few months, then the accident damage must be repaired before a state inspection can take place. Otherwise, the car will need to wait.
Unfortunately, there is no state mandate as to how fast an insurance company must respond to a claim. If you wait for months to file a claim, then the auto insurance company is within their legal rights. This insurance is cheap.
Auto insurance that is discounted will only cover the cost of keeping a vehicle on the road and complying with all legal requirements. Everyone wants to save money. However, the cheapest auto insurance is not always the best value. In fact, it can end up costing more than the middle-priced option. Everyone wants to get the best insurance possible for their money.
Low-cost auto insurance is only available when you have the minimum legal coverage. Consumers who opt for greater coverage end up paying more if they don’t have reliable car insurance.
Reputable car insurance companies are committed to quality and customer service. Low-quality auto insurance companies focus on being the cheapest. They can’t offer anything beyond a legal vehicle, provided that nothing happens to it.
Cheap auto insurance companies often rely more heavily on automation. Getting a live person on the phone to help with claims or billing issues is as simple as going into the frozen tundra to find fresh vegetables. Because they receive as little human input as possible, they are more likely to make mistakes.
Security is one of the biggest hidden dangers when dealing with a low-cost auto insurance company. An auto insurance company will require sensitive information from drivers. Many require drivers to provide a credit card number, social security number, address, telephone number, as well as prescription medication information. Identity theft can be prevented by having this information. Security is not something that cheap auto insurance companies value. Although reputable insurance companies may not be bulletproof, they do employ security professionals to ensure that sensitive information is kept safe and not accessible by hackers.
Cheap auto insurance companies can’t match the quality and safety of reputable companies. The only thing that people can save by choosing cheap auto insurance, is $50 at the start of their policy. There is no bargain after that.
