What’s Wrong With Cheap Auto Insurance?

August 5, 2015

cheap auto insurance

image courtesy of stuart miles www.freedigitalphotos.net

You hear it all the time, especially from younger drivers. I want some “cheap car insurance.” They’ve saved their money and put it all into a used car and they look at car insurance as a necessary evil. The car is fun. The car is freedom. But it isn’t worth much and the insurance is just an expense to get out of the way for as little money as possible.

So, are there cheap insurance companies out there?

Not really. Insurance coverages are regulated by New York State. There are certain coverages you must have, so every insurance company you call will offer them. But you get to choose the amounts of insurance you want. And that’s one way you can get cheaper insurance.

But here’s the rub. Cheap insurance is fine until you get into an accident! Cars are powerful machines that can cause major damage and bodily injury even cruising at lower speeds. A cheap auto quote can lead to a disaster you don’t want in your life.

3 Ways You Know You’re Getting a Cheap Auto Insurance Quote

1) Cheap car insurance is usually purchased from an “800 number.”
The person quoting your insurance probably has no idea about you or our local Central New York area. Winters are tough here, so should you carry physical damage on the car at least till spring? Would an agent speaking with you from “who knows where” suggest this? Probably not.

Also, what if you have an accident? Who do you call? Most likely it won’t be someone local who you can trust. It will be the same 800 number that you got the original quote from. That sounds pretty scary to us!

2) For car insurance to be the cheapest, the limits must be low.
Here’s what we’ve noticed about car insurance, before you have an accident you’re concerned about price. After an accident, all you really care about is coverage. Cheap insurance usually means lower coverage. The thing is, if you are sued for damaging another person’s property or hurting them physically, you may end up responsible for their damages even if your insurance runs out.

Think of it this way, you purchased cheap auto insurance with Property Damage Liability of only $25,000. If you seriously damage another person’s Lexus in an accident that’s your fault, you could easily be responsible for a $30,000 loss. Your cheap insurance policy pays the $25,000 and YOU will be responsible for the additional $5,000! Can you imagine working that off? What a waste of time and money.

3) Some auto coverages aren’t even offered.
Cheap insurance quotes often don’t include MedPay Coverage for medical and funeral expenses or Additional No Fault Coverage. And minimum limits Underinsured Motorist will never kick in because the other guy’s Underinsured Motorist won’t be any lower than yours.

Here at Scalzo, Zogby & Wittig we don’t offer “cheap” insurance. Our rates are some of the best in the New Hartford, Utica, Rome area, but we are not an 800 number. We will offer you better liability limits and inform you about all the coverages available to you.

So call us today!

Until next time,
The SZW Team

Scalzo, Zogby & Wittig, Inc. is your New Hartford area independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000.