Getting insurance is mandatory in most places when buying a car. It would set you back a few hundred dollars, but there will always come a time you will need it. There is nothing wrong with availing of this type of security arrangement, except that you should know what you are getting into.
Its concept is simple. Dealers with cheapest car insurance offerings usually involve the most risks. No, this is not to drive you to go out and get the most expensive package available, but to serve as reminder that you should be more careful. A lot of car owners have been put at risk and yet most were not able to recover anything from their coverage provider. In some worse cases, both parties ended up suing each other because one of them appeared to have defrauded the other. Remember, selling contracts based on the assumption of risk for both owner and insurer is a lucrative business which can make or break the company. This places a consumer at the receiving end of a cutthroat business competition.
Why do the cheapest car insurance offers bring greatest risk? This is because of when a dealer or an agent comes to offer coverage, the agent is in fact telling you to give him your money so that he will pay for any damage or injury you might suffer in an accident. Since there is no exact way of telling when injury will come, you normally decline. This will prompt an agent to give discounts, freebies, tokens and other means just to get you to sign a contract. He will tell you that this is a “win-win” situation, without actually mentioning details. If you happen to be gullible enough, he leaves with your money with the determination to deny your claim if you do suffer injury.
It is important to remember that the cheapest car insurance offer does not necessarily mean that you hit the jackpot. In fact, this may mean that you are getting in way over your head. Of course, just because an offer is very attractive does not automatically mean that it is a scam of some sort. It may just be the very thing you wanted.
The best way to be sure about entering into cheapest car insurance arrangements is to read every detail about the package. If necessary, take a few days to study the text and to read and understand its fine print. If you need to, go see a lawyer or a trusted friend to get independent advice on whether or not you should go on and take it.