Cheap car insurance –
is it worth the risk?
A cheap car insurance rate might seem like a good idea at first, but it’s important to understand what you’re really buying.
Will you have the right coverage with cheap car insurance rates?
We posed this question to Paul Harrington, a Farmers Insurance® agent based in Moore, Oklahoma. Here’s what he had to say about cheap car insurance.
“[A] one-size-fits-all approach doesn’t always work when it comes to insurance, whether it’s for your car, home, life, pet, etc. Every person’s situation is different, and choosing the cheapest option could potentially mean you do not have all the coverage you want.
One of the biggest mistakes people can make when shopping online for car insurance is not having enough liability coverage, which is coverage if you’re found negligent in an accident. It might be tempting to go for the minimum coverage, but it may not be enough if you are responsible for another person’s injuries. In my state of Oklahoma, for example, minimum coverage is $25,000 to cover someone’s medical bills. Let’s say you injure one person who has medical bills in the $50,000 range. The insurance company is only responsible for $25,000 and the insured may be on the hook for the other $25,000. That’s a scenario no insurance customer wants.”
The lesson here: cheap car insurance may save you money in the short term, but it could cost you if an accident happens.
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