cheap auto insurance

Why Cheap Auto Insurance Isn’t The Best Option

After splurging for a new car, it can be tempting to opt for the bare minimum insurance coverage. But getting a sparse policy may not be the best idea. If you choose for minimal coverage, you could find yourself in a bind in the event of an accident. Keep these things in mind as you choose your insurance coverage.


You May Be Lacking Protection

A minimal policy may translate to minimal coverage. While most states have a minimum amount of car insurance that you are required to have, often it may not be enough. If you do get into an accident you could end up paying a lot out of pocket. Accidents can’t be predicted to it’s best to prepare for them before they happen.

Coverage Limits

Your coverage limits can vary from policy to policy. A coverage limit is the maximum amount that your insurance will cover. It’s important to pick coverage limits that will help protect you in the event of an accident. Plan for what you can’t afford to pay. You will want your coverage limits to be sufficient. To help determine what your coverage limit should be, talk to your insurance agent. They can help you assess what you need.


Your deductible is the amount that you will need to pay out of pocket before your insurance coverage kicks in. Having a higher deductible will usually mean that your premium will be lower. However, if your deductible is too high, you could be in deep trouble if you get into an accident. Make sure that you deductible is a number that you can pay out of pocket without running into trouble.


A better way to save on car insurance is through discounts. Many insurers will provide discounts including good driver, paid-in-full, student, and paperless. If you have a new car, the new safety features might qualify you for a discount too! Another popular option is to save through bundles. Some insurance companies are willing to offer discounts if you bundle multiple coverages. Be sure to ask your insurance agent about which discounts you qualify for – you might be surprised! By using discounts to reduce insurance costs, you won’t be sacrificing coverage. It’s a win-win!

Shop Around

One way to make sure your getting a good value is to shop around for insurance. You may not be happy with the first quote you get. Look around and research what coverages are available to you! It may take some time, but this can often be a better option than getting a cheap insurance policy.

Talk to Your Agent

The best way to make sure that your auto insurance is adequate for your life is to talk to your insurance agent. They can help you assess your needs and how your insurance can help protect you. They are also able to answer questions you may have. What deductible should you have? What coverage limits are good for you? What premium can you actually afford to pay? Getting a minimal insurance policy may initially seem like a good idea to save money, but that’s not always the case!


Talk to an Encharter agent about auto insurance coverage at 888.754.8299!

Read More