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Car Insurance Quotes: Why Pay Less Can Mean Pay More

Being a vehicle owner generally means having a lot of extra costs. Not only is the cost of purchasing a car or SUV rather high, but there are also the costs involved in fueling the vehicle, maintaining it and insuring it. And it is only natural that, to keep the costs as low as possible, low-cost car insurance quotes are sought out.

But while there many be obvious positives to doing that, there are also some negatives that need to be considered. The purchasing law is that we get what we pay for, and when getting cheap auto insurance, this is certainly true.

In order to keep an insurance premium low, the level of protection that the policyholder has is lessened. What this means is that, should there ever be an accident or incident, the driver is not as well covered by the car insurance policy as they should be.

True Price of Cheap Insurance

Everyone likes to get the lowest costing premium, but there is a price to pay if this is the case. When seeking a car insurance quotes, it is important to know how often the vehicle is used, where it is used and who is driving. This allows people to work out how much coverage is actually needed.

The problem is that if a cheap auto insurance policy is secured, while they are more affordable, they usually leave the driver exposed to a greater level of liability. This basically means that in the event of an accident, there are more areas where the insurance company will not cover the costs and the driver must pay instead.

So, while the car insurance premium may only be a couple of hundreds dollars per year, an incident could end up costing several thousand, especially if there is serious injury with a loss of earnings as a result, or significant damage done to the property of a third party.

Why Pay Less Can Mean Pay More

What Coverage to Look For

It is not a good idea to get a car insurance quotes without knowing what kind of coverage is on offer. Your own situation and driving needs will dictate what kind of coverage is required, and it is essential to know this if the right level of protection is to be secured.

The specific aspects of every policy are laid down clearly in the documentation, but there are some phrases and titles that should be looked out for. Remember, that if the protection expected does not meet the protection given, then the extra costs can make the cheap auto insurance policy a very expensive one.

The range of coverage can be broken down to 5 basic areas: body injury liability; personal injury protection; property damage liability; collision; and comprehensive cover. The more options chosen the larger the car insurance premium will be.

What the Coverage Means.

So what does all this mean? Well, the types of coverage have different areas of coverage, and this is where knowing what is needed is so important. The details on your car insurance quote will reveal not just what is covered but also where the vulnerabilities are.

For example, body injury liability means that any injuries suffered by the other driver (and his vehicle) in an incident is covered. Personal injury protection, meanwhile, covers any distress or loss of earnings that might be suffered as a result of being in an accident. The problem with getting cheap auto insurance is that it may cover the policyholder for some incidents, but not all.

By knowing your situation, driving habits and required usage, the most appropriate car insurance can be secured. For example, a driver in a busy urban area is more likely to cause damage to the property of another person if in an accident, so property damage liability is wise to include in the policy.