Why The Cheapest Car Insurance Can Cost You The Most

When shopping for car insurance, it’s tempting to focus on one number: the premium. After all, if two policies both provide auto insurance, why not choose the cheaper one?

The problem is that the lowest-priced policy may also provide less protection when you need it most. Saving a few dollars each month can potentially lead to thousands of dollars in unexpected expenses after an accident.

Low Liability Limits Can Put Your Assets at Risk

Liability insurance helps protect you when you are legally responsible for injuries or property damage caused by an accident. Choosing only the minimum liability limits required (in New York 25,000/50,000 Bodily Injury and 10,000 Property Damage)  may reduce your premium, but those limits can be exhausted quickly in a serious accident.

Consider an accident involving multiple vehicles or significant injuries. Medical bills, lost wages, vehicle repairs and legal expenses can add up rapidly. If a claim exceeds your policy limits, you could be personally responsible for the remaining amount.

For homeowners, professionals, business owners and others who have accumulated assets, adequate liability protection is particularly important. An umbrella policy may also provide an additional layer of liability coverage above your auto and homeowners policies.

A Higher Deductible Isn’t Always a Bargain

Increasing your collision or comprehensive deductible is one way to lower your premium. But make sure the deductible is an amount you could comfortably pay tomorrow.

A $1,500 or $2,000 deductible might make a policy look attractive today. If your car is damaged next week, however, that amount could become a significant out-of-pocket expense.

The goal should be to find a deductible that balances affordable premiums with manageable financial risk.

What’s Missing From the Policy?

A low premium can sometimes result from reducing or eliminating useful coverage. Depending on your situation, that might include collision coverage, comprehensive coverage, rental reimbursement, roadside assistance, or uninsured and underinsured motorist protection.

Imagine your car is in the repair shop following a covered accident and you need a rental vehicle for several weeks. Without rental reimbursement coverage, that expense may come directly out of your pocket.

The important question isn’t simply, “How much does this policy cost?” It’s also, “What am I getting for that price?”

Price Matters—But So Does Advice

Insurance policies can look similar on a quote sheet while providing very different levels of financial protection. That’s one reason working with an independent insurance agent like Scalzo, Zogby & Wittig, Inc can be valuable.

As an independent agent we can compare options from multiple insurance companies while also helping you evaluate liability limits, deductibles, optional coverages and potential discounts. The objective isn’t necessarily to find the cheapest policy. It’s to find the right coverage at a competitive price.

Look Beyond the Premium With Scalzo, Zogby & Wittig, Inc.

Saving money on car insurance is worthwhile—but not if those savings leave a major gap in your protection.

Before choosing a policy based solely on price, take a closer look at what it covers, what it excludes, your deductibles and how much protection it provides if a serious accident occurs.

Before renewing your auto insurance, talk with us, your independent insurance agent. A coverage review could help you find the right balance between price and protection—and prevent today’s savings from becoming tomorrow’s expensive surprise.

Until next time,

Your SZW Team

SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.