Why discount insurance companies might not be cheaper

Lets face it, todays world is expensive.  We have mortgage payments, cell phone bills, kids sports or lessons, sometimes even college!  We are always trying to save a buck here or there.  Some get rid of cable others may start to look into there car insurance to save a penny.  Could a discount car insurance company be the answer?

It really doesn’t matter what time of the day or what channel you are turning on the tv, discount insurance commercials are everywhere.  They offer you a much cheaper price than what you are paying now from your local independent agent.  The give you agents that can take your calls 24/7.   This seems way to good to be true!  But do you remember that phrase “the grass isn’t always greener on the other side?”

So lets break it down why choosing Farquhar and Black is the better choice in the long run.  And in the end might cost you a few more dollars on your premium but in the long run will be so much cheaper. However, buying cheap car insurance – or minimal car insurance – today can set you up for a big financial hit tomorrow. Here are some hidden costs of cheap car insurance that you won’t know about until its too late-

You might have to cover your own injury and repairs

Most states like Massachusetts require you to carry a liability limits in order to drive your car.  This coverage is going to help pay for repairs and medical expenses to the person you hit.  When you choose the discount insurance companies some times they will drop a lot of the coverages you need in order to make your policy incredibly affordable.  This may mean that when you get in accident you will have the coverage to pay the other party but you may have to pay for your medical bills and repair costs out of your own pocket.

You might not have enough liability coverage

Like we mentioned above its required in the state of Massachusetts to carry limits of liability coverage.  However, discount auto insurance most likely will not offer enough liability coverage to properly cover a claim.  If your policy’s liability limits cannot cover a claim you could be taken to court.  And thats when a judge might order part of your pay check to go to the other party in order to pay for the damages you caused.  This could take months or even years to finally pay back the other party depending on the accident.

You might not be covered if your friend is driving

Many policies offer coverage to your spouse, household members, family members, and friends when given permission.  When you choose a discount insurance policy many times these people are not covered.  Which means you aren’t covered if an accident happens and now you are on the hook for all the damages!

I know it’s tempting to determine what you can afford to pay for car insurance and then find a policy to match.  But, what these 3 examples say really is that saving in the short term may actually cost you more in the long run.  So, talk to us, your local independent agent before you settle for an auto policy that leaves you open to huge risk.  Farquhar and Black Insurance Agency can help you balance coverage and price to a point that feels comfortable to you.

As I always say: I’d rather have the coverage and not need it, than to need it and not have it.  You just never know when that day will come when your insurance policy helps save you from severe financial loss.

 

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