car insurance

Auto insurance is something that people pay for but may not use frequently or at all. Budget-conscious consumers often think that purchasing cheap insurance would be a good way to save money, but it could be a huge mistake.

Reason # 1: Inadequate Coverage

If you want low premiums, an insurance representative may suggest lowering coverage limits or eliminating certain types of coverage altogether. That can result in affordable premiums, but you may be left uncovered or only partially covered if an accident results in injuries and/or property damage. A cut-rate policy may not include collision coverage, may not have high enough liability limits, or may not provide coverage if you are involved in an accident caused by an uninsured driver. That could leave you in a financial predicament that could have been avoided by paying higher premiums for better coverage.

Reason #2: Scams

If you find a website or if someone calls you offering cheap auto insurance, be cautious. Scammers prey on people who are looking for inexpensive car insurance. If you hand over your personal and financial information, you can be swindled out of money and become a victim of identity theft. You may also think you have auto insurance coverage until you get into an accident, try to submit a claim, and find out that you actually aren’t covered at all.

Reason #3: Missing out on Valuable Coverage

More expensive policies may offer coverage that could save you a lot of money if you ever had to use it. For example, some companies will forgive your first accident instead of hiking your rates. Others will pay the entire cost to replace a totaled vehicle, not its assessed value at the time of an accident.

How to Find the Right Car Insurance

Auto insurance premiums are based on many factors, including the type of vehicle, how it will be used, the owner’s driving record, the geographic area, and possibly the vehicle owner’s credit score. Companies often offer discounts to attract certain types of customers, such as people of a particular age group, military personnel and veterans, or homeowners who bundle coverage.

When shopping for car insurance, cost should be one factor you consider, but it shouldn’t be the most important one. Focus on finding the right coverage so your family will be protected if you should be involved in an accident. Before you agree to purchase an auto insurance policy, make sure you understand what it does and doesn’t cover and ask about any discounts for which you may qualify.

Your best bet is to talk to a licensed agent to figure out what types and amounts of coverage you need and to get quotes from several companies. Petruzelo Insurance can help you compare quotes from multiple insurers. Contact us today to learn more.