Should You Buy the Cheapest Insurance?

There are times that getting the cheapest insurance could lead to significant problems down the road. Of course, you want to save money on insurance, regardless if it is for your car, home, life, or business. But sometimes, getting the cheapest insurance outright instead of carefully looking at the coverage first could pose problems later on.

Below are four situations where a decision to buy the cheapest insurance could end up in disaster, and how you can avoid such situation.

    1. Using a rental car after a car crash

You might need a rental car while you wait for your car to be repaired after an accident. Most PA car insurance policies offer an optional loss-of-use coverage, which will refund you for the car rental expenses while your car is not yet ready for use. Because this type of coverage is optional, most people who want to save money choose to strike this down.

But the optional car rental coverage is cheap and will help you to get a regular mode of transport while you’re waiting for your car. It may take several days or even weeks for the car parts to arrive and the car to be fully fixed.

Standard car rental coverage may only cost about $30 per year. This small cost can provide you at least a month of car rental use. If you forgo this policy, you need to pay for regular car rental rates that could even cost you hundreds of dollars.

    1. Being sued by someone hurt inside your business premises

You may choose to save money by buying only the cheapest insurance for your business. But if a customer is hurt while inside your business premises, you could face a possible lawsuit.

Without enough liability insurance, you can be liable to pay thousands of dollars to compensate the person who sustained physical injuries. In general, the larger your business, the more liability insurance protection you should have. It is crucial to speak with a licensed insurance broker to help you figure out how much coverage you need.

    1. Getting Hit by an Uninsured Car

If you don’t have uninsured motorist coverage, it’s like you don’t have any coverage at all. If an uninsured driver hits your car, you need to pay for the damages. Thousands of cars in Pennsylvania are still not insured, so there is a chance that you will face this situation. This optional coverage usually costs about $100 per year, but it can save you thousands of dollars.

The cheapest insurance only offers basic coverage. You must also consider getting underinsured motorist coverage. You can use this coverage when the damage for your car exceeds the cap of the liability policy of the other driver.

    1. Unexpected Death

Dying without enough life insurance can affect the life of your dependents. Putting off the decision to buy life insurance can also be expensive. Take note that the younger you are, the cheaper your life insurance will be. A 25-year-old single man will have lower insurance premiums compared to a 35-year-old married man. Every added year to your life brings a price increase for your insurance.

Get comprehensive insurance coverage in PA for your needs. Get a free quote or call at (717) 243-4400 . A professional insurance agent will answer your queries to guide you through why the cheapest insurance is not always recommended.