Posted in News on June 20, 2018

Owning a car in Montana can be expensive, and insurance costs add to your financial responsibility. Many people want to save money any way they can, and a car insurance bill might be a tempting place to look. After all, depending on your policy, it can be easy to shave a way a substantial fraction of the cost.

However, cheap car insurance only serves to save you money on your monthly bill. In an accident, the costs might be more than you imagine.

Drawbacks to Selecting Cheap Auto Insurance

When comparing auto insurance quotes, people often gravitate toward the cheapest coverage plan. The problem with this mindset is that auto insurance only provides coverage in proportion to the cost; the cheaper the plan, the less you can count on when things go wrong.

No one ever intends to be in a car accident, but even the safest of drivers can encounter unforeseen road conditions or get in an accident due to another driver’s negligence. The entire point of auto insurance is to take precaution against the potential of an emergency. With cheap coverage, it’s likely you’ll face:

  • Insufficient coverage – With only state-required liability, you have a greater risk of insufficient coverage in the event of an accident. Your policy may only cover the other vehicles involved in the incident, leaving you without any way to cover the damages to your own vehicle if you were the one liable.
  • High out-of-pocket costs – Even within a comprehensive insurance policy, selecting a high deductible just to lower your premium costs can be risky. While you may save on your bill, the amount you’ll have to pay out-of-pocket before your coverage kicks in will increase in return. When selecting a deductible, be honest with yourself the amount you could pay if an emergency called for it.
  • Poor customer support – A cheap policy may be a sign of poor customer service and claims support. No matter what company you look at, be sure to read customer reviews to make sure you’ll have a support team when it matters most.

Any of these factors can lead to greater costs down the road if you don’t exert caution. Paying a bit more for your premium can be worth it to avoid financial distress due to a motor vehicle accident.

Insurance Scams

Since cheap insurance is such a draw to potential buyers, cheap insurance scams have cropped up. While the price may be attractive, when the time comes to file a claim you may find that the company does not exist, leaving you without any form of coverage. To avoid insurance scams, be cautious of:

  • Significantly lower prices than similar policies
  • Requests for full payment through cash or money order
  • Not receiving an insurance ID card
  • Offers to backdate the policy
  • Typos in any advertising or documentation

Do not send an insurance company any money or personal information without researching it first. Making sure a company’s website is secure can also help indicate if a company is safe.

Finding Affordable Insurance

As opposed to settling for cheap insurance, find a plan that fits into your reasonable budget while still providing decent coverage. If cost is still a concern, look for plans that offer discounts, such as for:

  • Anti-theft devices
  • Good driver rating
  • Good student rating
  • Bundling with homeowner’s insurance
  • Multi-car policy
  • Safety devices

A plan with poor coverage and customer service won’t do much to help you feel secure while driving – and it can cost you more than you save. To avoid overwhelming costs in the event of an accident, it’s worthwhile to invest in an auto insurance policy that will give you the protection you need.

Need a Car Accident Lawyer?

If you’re having trouble getting compensation from your injuries from a car accident claim, seeking advice from an experienced car accident attorney can force insurance companies to take your claim seriously. If you’ve recently been involved in a car accident, contact our law office today to schedule a free consultation.