Insurance Advisor at Oliver L.E. Soden Agency, Inc

Why Cheap Car Insurance Costs More Than You Think

With so many demands on the average household, it comes as no surprise that you may be looking for cheap auto insurance. If you have a favorable driving history, you might not even be thinking about accidents or major repairs becoming an issue. Discount car insurance may appear to make sense. Unfortunately, budget car insurance can end up costing you more in the long run.


Let’s look at some of the hidden costs of discount car insurance, and why going with the minimum may not be the best way to save money.

Injuries and repairs may need to be paid out of pocket.

Most states require you to have liability insurance for property damage or bodily injury to others. The coverage is to protect the other driver so that they’re not left with medical bills because you chose not to carry full coverage. However, when it comes to your medical and repair bills, you’re on your own. Think twice about buying the minimum car insurance. Sure, you’ll be saving money each month, but you won’t have any coverage for yourself.

A judge can garnish your wages to pay a settlement.

If you get into a serious accident and hurt someone else, they could walk away with a settlement. If the settlement is larger than your auto liability limits, it’s possible that the judge will garnish your wages to pay for the victim’s long term medical needs. Having the proper amount of coverage on your vehicle gives you more to work with so that you can keep your money in your account.


Other drivers may not be covered under your policy.


Most insurance carriers give coverage to you, any listed family members in the home and the occasional friend who drives your vehicle. However, discount policies may reduce coverage - or offer no coverage at all - for other drivers. If you end up borrowing your car to a friend or family member, make sure you know whether they are covered or not.


Speak with an insurance agent for the best advice.


It’s tempting to choose the lowest cost insurance policy when you have so many bills to pay. But, be careful about this decision. You could end up paying more in the long run. The best approach is to speak with your local insurance agent. You don't have to choose the most expensive policy to get good auto insurance, but you do need to protect yourself in the event of an accident. For honest advice on the best auto policy for you, call Hal Soden at your convenience!