We are all aware that the world is experiencing a financial crisis. Our economy is not the way it used to be; unemployment is increasing, real wages are falling and many large companies are in hard times or worse, running bankrupt, with the notion “to big to fail” proven wrong. In this situation, there is already a growing proliferation of small time companies offering cheap and discounted services. These types of companies are called “budget” companies. They claim to give quality services at a much lower price than contemporaries in the market. In this troubled economic times, it seems that availing their services is such a great deal.
Budget companies are already seen in the car insurance industry. Typically, these budget insurance companies offer cheap insurance premiums and claims to give quality protection for you and your automobile. In a time of closures and bail-outs, isn’t it efficient to avail cheap insurance for your car? What the widespread tv and print advertisements of budget companies fail to say is that it is likely to have limited coverage in exchange for incredibly low premiums. It is true that it offers lower prices, but coverage is most likely to be sacrificed.
Basically, budget companies offer only the most basic coverage that it can give. These promos often target the most frugal customers in the market, serving their needs. Low prices are used to make up for this limited coverage. In addition, getting insurance claims is not that easy. More often than not, getting claims from car insurance companies is a long and difficult experience, with the prospects of exhausting and marathon processes, and is further complicated by red tape. It is true that every insurance company has its own troubles, whether budget or traditional, but somehow, it is the traditional insurance companies who establish the standards of the industry. Offering substandard prices often also comes with a price, which are lower standards of services especially regarding coverage. Imagine yourself getting all the pain of processing your claims, but in the end of the day, you don’t get the right amount of coverage that you actually need. Instead of saving money, you actually spent it inefficiently.
Still, the best way to get the most affordable car insurance without sacrificing your coverage is to shop around. It is wise not to fall into the trap of blindly availing the cheapest car insurance plan available. Try to take into consideration other variables to get affordable but quality insurance policies, like taking a look at deductibles (low premiums usually have unrealistic deductibles that just can’t fit your budget), or check the history of the insurers, whether it has a history of repeated complaints regarding the same issue. Avail of all the discounts available; it significantly lowers your premium without sacrificing coverage. Remember the old adage: “you get what you pay for.”