Ever wonder how some companies offer such low premiums?
Sometimes when an ad for cheap insurance comes on the radio or TV, you start thinking about how to get a better deal for yourself, it’s a lot like thinking the grass is greener somewhere else or a certain line is moving faster at the grocery store. Perspective is the key to understanding this situation. Billions of dollars are spent on insurance advertising every year, they know how to get your attention – low premiums. But just like a good used car salesman, they know how to finagle the numbers to make it look like a good deal. It is simple, if it looks too good to be true, it is!
Simply put, you get less coverage.
Less coverage is almost never a good deal for the customer. For example, dropping collision may sound like a good plan to reduce insurance costs, but that means your insurance pays for repairs on the other person’s car but not yours. Similarly, raising your deductible may save you money in the short term, but with the economy so tight, who has $1000 or more lying around?
The easiest and best way to get perspective for yourself is to have an honest discussion with a professional insurance agent. Here are a few important items to talk about:
-
What kind of parts will the company pay for to fix your vehicle, new or after market?
-
Are there any restrictions on which facility may perform the repairs?
-
Will the insurance company cover the whole cost of a new car or only the depreciated worth?
-
Will the insurance company pay for the expense of a rental car when your vehicle is being repaired?