Why buying the cheapest car insurance might not be the best option


Buying a car insurance online is one of the most easy and hassle-free options out there to buy an insurance policy. The price of the product is something that catches the attention of most people. While picking an economic option is not a wrong thing, knowing the difference between a cheap car insurance and an affordable plan is very important. Affordable car insurance deals with all your requirements under the amount you wish to spend for the insurance. A cheap insurance on the other hand focuses mainly on bringing down the cost of insurance while not taking into account the coverage given by the plan. It is advisable to pick an insurance policy providing the necessary services while maintaining good quality.

Why buying the cheapest car insurance might not be the best option
vector illustration of an accident of a two cars

Some important points to consider before opting for a cheaper insurance plan are listed below:

Lack of coverage

A comprehensive insurance plan generally consists of two parts: own damage(OD) and third-party liability. Insurance policies at the very least have to cover third-party liability. This is the minimum requirement for an insurance policy. Third-party liability insurance policies are comparatively cheaper as the coverage offered is minimal. Buying such policies might sometimes result in spending a lot of money for vehicle repairs that cannot be claimed under the policy. This could result in spending a lot more money than what was saved opting for the cheaper insurance plan.

Lack of protection against possible incidents

The basic car insurance does not offer protection in many situations that are likely to happen in our country. A comprehensive insurance policy offers cover in a number of situations. Damages caused due to rain, flood, thunderstorms, and vandalism are covered. This is generally not offered on cheaper policies.

The problem of high deductibles

Some of the insurance policies quoting a lower price generally come with a catch. These insurance products tend to have high deductibles. Deductibles here refers to the percentage of amount to be paid by the policyholder in case of an accident. Deductibles are usually part of insurance products. Picking an affordable deductible is very important as higher deductibles cost a huge amount of money at the time of an accident. Cheaper insurance policies generally tend to have high deductibles.

Customer service quality

Some of the companies may not provide the customer service or support that suit your needs. Filing claims or getting a response from the company can take a lot longer than normal. Having the best possible service can help in getting the most out of your policy in a timely manner too. This issue is prevalent even in the bigger insurance companies so care should be taken while picking the insurance plan based on a cheaper price.

Reliability of the insurer

Some of the newer insurance companies in the market offer relatively cheaper policies than others. The incurred claim ratio is also a very important thing to check before finalising any insurance product. This value shows the ability of the insurer to make payments when a claim is made. An insurance company with the highest ratio is generally an ideal option if it offers affordable car insurance. Cheaper insurance plans might have an attractive price but these factors are to be analysed to find the best product for you.

It is never advisable to compromise on the service quality in the process of saving some money. It would be a smart move to compare different car insurance quotes online to select the policy most suitable for you. While not all the cheaper insurance plans out there are bad, it is best to pick a comprehensive and affordable insurance policy to claim maximum benefits for your vehicle.