Are Car Insurance Commercials Really Good Deals?
Saturday, August 10, 2013, 1:00 AM | Leave Comment
Car insurance commercials can be very enticing. They will portray a picture that shows people saving money on their monthly premiums but also enjoying great coverage. In most cases this is simply not true. The minimum insurance plans that are being advertises rarely contain a sufficient level of coverage.
Here are some reasons to avoid the minimum insurance plans that companies are often advertising:
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Accident Liability
When you get into a car accident, it is possible that you will be liable for the damages incurred to another person’s car. In these cases, your insurance must cover the cost of damages to two vehicles. Minimum insurance plans simply do not provide such levels of coverage. While most wrecks will result in damages of more than $100,000, minimum plans rarely go above $50,000 or $60,000 in damages coverage.
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More Coverage Equals More Savings
The monthly premium cost differences between the minimum plan and a plan with more coverage may not vary too much. In this case, it is a lot better to spend an extra $5 or $10 a month instead of having to pay out of pocket expenses in the aftermath of a car accident. If you want more coverage but want to pay the same, low monthly premium, ask your provider about increasing your deductible by as much as you can afford.
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Liability Coverage Trumps Collision Coverage
Many people make the mistake of adding on collision coverage to their state minimum amounts and then thinking that they are sufficiently protected. While collision coverage is a great option to choose, it only protects your car in the event of an accident. Liability coverage, the insurance policy that pays out to others in the event of an accident, is what you need to increase to an acceptable level. Liability coverage will pay for hospital bills, property damage, and other miscellaneous expenses that other people incur when you crash into their car.
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Comprehensive Plans Come with Free Extras
Most comprehensive insurance plans will come with other “freebies” in the policy. For example, a minimum insurance plan does not include free 24/7 roadside assistance. However, a more comprehensive plan will have this feature built into it. In that case, you may be saving a bit on monthly premiums with the minimum plan, but you will have to fork out a lot more for roadside assistance should you need it.
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Only Get Minimum Coverage as a Last Resort
For those who cannot afford higher insurance premiums, minimum coverage is a great alternative. College students, young adults, and those who live from one paycheck to another may not be able to afford more comprehensive plan. For these individuals it is just about having enough insurance to be able to drive legally. In that case, the minimum plan is an option. However, people should shift to better plans as soon as they can afford them.
If you are looking to get comprehensive insurance plans then you may want to check out the Colorado auto insurance quotes worldclimate that are available on WorldClimate.com
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