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Beware Of Budget Car Insurance
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Written by: Susan Reynolds
Total views: 105 |
Word Count: 537 |
Date: Wed, 8 Jul 2009 |
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There are several car insurance companies offering budget car insurance policies. They use tactics like low monthly payments and low deductibles to lure us in. We all want to save money on car insurance but at what cost to our protection? The coverage that is offered with these policies is usually insufficient and will leave you holding most of the responsibility if not all for the cost involved in the accident.
Susan Reynolds is a content coordinator for a leading South African Insurance Provider that specialises in Car Insurance Policies.
The majority of budget car insurance companies are offering only liability insurance that meets the legal requirements of your state. This leaves a huge gap in coverage that could cost you thousands.
The state minimum is liability insurance and what that means is anytime you are involved in an accident that is determined to be your fault any repairs that are needed to your vehicle or injuries you sustain will be your financial responsibility. If you hurt others in the accident your insurance may not be enough to cover their medical costs and you are at risk of losing everything you own in order to pay for them.
Damages your vehicle encounters that are not your fault but are due to hail, wind, or vandalism will not be covered in your policy and the cost of repair will be yours to bear. Liability insurance does not pay for damage to your vehicle no matter how it occurred. So if you drive off the road in an ice storm and hit a tree any damages to the vehicle, injuries to yourself, or cost of the tree will be yours to pay and yours alone.
There are too many drivers on the road who have budget insurance and this means if you are insured with the same type of insurance coverage and are hit by them that any repairs or medical costs their insurance will not pay for you will be liable for on your own. You will have no protection for underinsured motorists or uninsured motorists with these lower priced policies. Any type of accident, your fault or someone elses could end up costing you thousands of dollars and put all your assets at risk.
In the event of your car being stolen there is no coverage for your loss. There is a good chance you will never recover the vehicle and you will be responsible for the cost of replacing it. In the slight chance you do recover the car any damages that were done to it will be your responsibility to repair.
The low deductibles that are offered to you are useless since you would never even have a claim that would require you to pay a deductible. The entire amount of repair is yours and therefore there is no need to pay a deductible at all. This is a tactic used by the car insurance companies offering budget policies to make you think you are getting a great deal when in actuality you are getting nothing.
It is not legal to drive without insurance so the budget car insurance companies designed policies only to keep you legal. They offer no real protection to your property or any of your assets.
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