Have you ever thought to yourself, how can I get the cheapest possible auto insurance? Today I’m going to provide some compelling reasons as to why the “cheapest” option may be the most expensive in the long run.
When people say, “Hey Mr. Insurance Agent, I want the cheapest possible auto insurance. How do I do that??” Do these people really know what they’re asking for? The majority of the time we found the answer is no. There are a lot of intricacies and details that go into your auto premium. Of course, your driving record, credit score, where you live, and the type of vehicle you drive all play a part; however, to get the cheapest rate for you individually we have to talk about coverages.
Some of the initial coverages to consider are your liability limits, the medical expense, deductibles, do you have loan gap coverage? What about towing? These are the elements of the policies that agents can adjust to fit your risk preference and budget. When a customer asks us to provide “the cheapest possible car insurance policy” our response is “no”. We at Susquehanna Insurance don’t believe that minimum coverages are beneficial for you, or others on the road with you.
The law in Pennsylvania states that if you own a vehicle, you must carry insurance with minimum liability limits of $15,000 per person, $30,000 per occurrence, and $5,000 in property damage. That means that if you were to cause an auto accident and had a state minimum insurance policy, the most that policy would pay out to the other injured driver is $15,000. In today’s world, $15,000 does not get you very far if that person would need to be hospitalized. If you caused an accident and injured 3 people in the other car, the most your state minimum policy would pay out would be $30,000. These limits, in our opinion, are extremely low and are a great risk for you and anyone you may get into an accident with.
The last factor in Pennsylvania is $5,000 in property damage. Our office is located near a Mercedes Benz dealership. If you would rear-end a Mercedes Benz, that $5,000 would not get you very far. As of May 2018, all new cars under 10,000 lbs. are required to have backup cameras, and they are not cheap. New cars also have increased technology such as sensors, self-driving functions, and even front/rear facing cameras all of which can quickly add up in the case of an accident.
Back to the Mercedes Benz example; if you rear-ended a Benz and caused $15,000 of damage but only had $5,000 of property damage coverage on your auto policy, you would be personally responsible for the remaining $10,000.
Lastly the cheapest possible insurance policy will not provide any comprehensive or collision coverage for your car. If a tree falls on your car, no coverage. If a rock hits your windshield, no coverage. If you hit a mailbox, no coverage to fix your car.
When you ask for the cheapest car insurance, make sure you know what you are asking for and that you understand what your agent is quoting for you. Does a minimum coverage insurance policy make sense for you? Most likely not…. Here’s what we recommend.
At Susquehanna Insurance the minimum we will write for someone is $100,000 per person, $300,000 per occurrence and $100,000 in property damage. We believe these limits are adequate to protect you from large settlements, lawsuits, wage garnishments, and any other risk you may face with insufficient liability insurance.
If you are looking for ways to lower your car insurance, or have any questions regarding what you’ve read, give us a call at 717-290-7780, or check out www.susquehannains.com. We will help you work through various coverage options, deductibles, and discounts you may be eligible for. At Susquehanna we’re bringing CLARITY and SIMPLICITY to your insurance needs!