The Dangers of Choosing Car Insurance Based on Cost Alone

You may have found a DEAL on car insurance and you can’t wait to sign up! Before you take the plunge, however, take a look at these hidden costs in many cheap insurance plans:

1. Increased Driving Record Checks Most insurance companies will only check your driving record annually; however, someone with a non-standard plan may get checked multiple times a year. This means your insurance premiums could be increased if your driving record changes after one of these checks.

2. Lack of Coverage or Reduced Coverage for Some Drivers Non-standard policies may exclude any risky drivers, like your teenagers or a family member with a bad driving record. They also may exclude “permissive” drivers, which are drivers who get your permission to drive your car occasionally.

3. Decreased Coverage for Getting Your Car Repaired While it is normal for insurance companies to consider depreciation and current market value when writing you a check for a totaled car, it is not normal for a company to consider depreciation in repairs. Under a non-standard policy, you may get only partial coverage for accident repairs based on the car’s depreciation.

4. Lack of Coverage When You Get Sued for Punitive Damages If the other driver ends up suing you for causing an accident, your insurance may not cover any punitive damages that you incur from the lawsuit. The judge will award punitive damages if you were grossly negligent in your driving.

Not Sure About Your Policy? Contact Our Agents! To make sure that you are getting the best price for the right coverage, then call our Glendale insurance agents at Cornerstone Preferred Insurance! We are independent insurance agents, which means that we aren’t tied to any one company. You are our priority and we will do everything we can to find you the coverage you need at the price you want.