Discounted or inexpensive can look like a deal, but only if it covers you when you need it most.
Though it is possible to find amazing auto insurance for a great price, it is important to make sure that you truly understand the coverage that there may be limitations to some policies that can explain why they don’t cost as much.
This is especially true among insurers that offer cheap policies to individuals with bad driving records.
There are indeed some great opportunities out there, but you must learn to read the fine print before you add your signature to the dotted line. A seemingly wonderful bargain can provide an unwanted surprise when the time comes that a claim needs to be made. It is at these moments that you could discover that there are limitations and exclusions that will notably limit the payment you receive or even your ability to file the claim in the first place.
Shopping for affordable auto insurance isn’t just a matter of the price tag.
Remember that all auto insurance policies are not created equal, so you need to break them down into the various elements that they cover so that you can compare what is and is not covered, and for how much. Look into special exclusions and limitations, as well. Price can be compared, as long as you’re always comparing apples to apples. When in doubt, it is always a good idea to talk to a professional such as your agent.
Some of the items to watch for when considering what is known as a nonstandard auto insurance policy – that is, one that is meant for drivers with a flawed record, bad credit, or who drive specialty cars, for example – include the following:
• Reduced or no coverage for some drivers other than the policyholder
• Additional driving record checks, for example every year or every two years.
• No additional benefits. Many standard policies come with special perks that aren’t available in cheap nonstandard coverage.
• No punitive damage coverage in the case that a court finds you responsible for damages.
• Lower repair coverage.
• Lower allowable mileage. These caps can often be very low – such as 2,000 miles per year.
• No physical damage or liability auto insurance coverage if the vehicle is ever used for any type of business purpose, such as delivering pizzas or newspapers.