Many people believe that just because an insurance plan is cheap, then it is reliable. However, if the person is not careful, they may find themselves paying through the nose or trading an arm and a leg just to be able to comply with the terms written in fine print.
Cheap car plans can go as low as US$200 paid monthly. One man had availed of such a plan and had opened the account by paying that amount. Unfortunately, when he received the bill after four weeks, the company started charged him an additional US$70. His terms of payment went from US$200 to US$270 in just one month without prior notification.
Unable to take this abuse, he decided that the best solution would be to pull out from the plan, he was informed by the customer service personnel that in order to cancel the plan, which he had availed for only four weeks prior, he must pay US$320.
Moreover, when he asked for a refund of the US$270 which the company had taken from his bank account, it turns out that he will only receive US$160. Ironically, he insured a van under a policy specified for cars. This situation was further aggravated when the client had lost his job. During all this time, he was only able to drive his van once during the four weeks of its “insured status”.
Barring all the additional miseries of this unfortunate soul, he could have saved himself from much misery. Many people falter when it comes to selecting the perfect insurance plan because they get blinded by the cheap price, they forget to read the contract. These plans are subjected to terms that could work against the client. Companies with cutthroat policies often serve to benefit themselves and not provide proper service to their clientele.
Cheap car insurance can seem like a bargain but it might end up costing you more money in the long run. To avoid that, read some of the reviews that the clients give the company. You may be able to access this information either from the website or from people who may be one of their clients. Ask them about their credentials and track record. With the proper amount of information, you can form your own assessment and you will be able to ensure that they can deliver on their promise. After all, insurance is also an investment.