The Hidden Costs of “Cheap” Car Insurance

Why Low-Cost Insurance is Low Value

After spending your hard-earned money purchasing and maintaining your car, it can seem downright obnoxious to have to pay for auto insurance. Why should you have to pay yet another fee just so that you can leave your driveway? It only makes sense that you’d open your internet browser, type in “cheap car insurance,” and hit the search button.

Everyone loves a good deal, but there are many hidden costs behind an auto insurance policy advertised as “cheap.” If you don’t examine the fine print and cause a car accident, the costs may be a life-altering amount.

Cheap Insurance Policies Often Have High Deductibles

If your primary goal is to have a low insurance premium, you can achieve it by choosing a high deductible. A high deductible is an easy way to lower the cost of your premium payments, but if you need to make a claim, you’ll need a lot of cash on hand.

For example, instead of a lower, $500 deductible, you may choose a $1,000 deductible in order to save money. However, if you need a car repair, you’ll need to spend $1,000 out of your own pocket before insurance starts paying the rest of the bill.

According to Forbes, the average American will have a car accident once every 18 years. Will you have $1,000 cash on hand to pay the deductible when the time comes?

Cheap Insurance Policies May Not Offer Enough Coverage

Even if you are in a fender bender, it may shock you to find out how much an accident can cost. If you cause an accident, you are responsible for paying to repair the other car and the damage caused to the people inside of it.

The Florida state minimum for car insurance liability coverage is $10,000 in personal injury protection and $10,000 in property damage liability. You may be able to find a very cheap quote to receive this kind of coverage. However, it is absolutely not enough coverage to protect you and your family from damages resulting from a car accident.

Many insurance experts will tell you to purchase a policy with these coverages as a minimum:

  • $100,000 bodily injury coverage per person
  • $300,000 bodily injury coverage per accident
  • $50,000 property damage coverage per accident

Under Florida law, injury victims can be awarded your money for lost wages as well for future lost wages. For example, if you hit someone, and they break a leg, you may be responsible for paying to fix their leg, lost wages, and future lost wages. If the person’s job required them to walk, you may end up owing them hundreds of thousands of dollars.

Cheap Insurance May Have Bad Customer Service

Quality insurance companies use their policyholder premiums to maintain excellent customer service. If you’re in an accident, would you rather speak with an automated voice system or a human being whom you know personally?

Auto insurance policies from Florida Farm Bureau Insurance provide the highest levels of customer service. Not only do you have a direct line to your agent, but with full coverage auto insurance, roadside assistance is included. If you make a claim, a local adjuster will be scheduled to meet with you as soon as possible. As a result, we may process your claim more quickly, with life returning to normal at a faster pace.

Reduce Your Auto Insurance Costs with Discounts

Florida Farm Bureau Insurance offers high quality auto insurance that is also affordable. We offer a number of discounts to our policyholders that can help reduce the cost of their premiums. This includes loyalty reward credits and discounts for bundling companion policies. Plus, with your membership to the Florida Farm Bureau Federation, you can take advantage of money-saving member benefits. These benefits include credits and discounts on travel, health & wellness, cars, entertainment, and much more.

You’ll be making a wise investment with an auto insurance policy from Florida Farm Bureau Insurance. Start by using our agent finder below.