You've Been Warned: This Auto Insurance Choice Could Cost You Big

With inflation and factors like expensive vehicle repairs driving up insurance costs, many drivers may be tempted to switch to a budget car insurance provider or even scale back on current coverage to save money every month. On the surface, paying less for premiums may seem like a wise money move. However, going with the cheapest insurance options can have risks and could cost you more in the long run.

One potential drawback of skimping on car insurance is that drivers may opt for liability coverage instead of comprehensive or full-coverage options. This can be particularly appealing as liability coverage can range from $79 to $157 a month, while full-coverage policies averages $194 per month. While still providing coverage, liability insurance only protects a driver for damages and injuries they cause to others in an accident and does not cover their own vehicle if it is stolen, vandalized, or damaged in a collision with an uninsured driver. To make matters worse, some low-cost insurers also have a reputation for denying and delaying claims, leaving drivers with hefty out-of-pocket costs despite having the right coverage.

Purchasing stronger insurance can offer a range of benefits beyond peace of mind when driving. More expensive, full-coverage policies can include comprehensive protection, no matter who is at fault or the insurance status of another driver. Additionally, it can protect against unexpected expenses like theft, windshield damage, and natural disaster-related damage. These additional protections come with a higher monthly premium but can save thousands in unexpected repair costs.

Selecting a more reputable insurance provider will also cost more, but could come with better services. This can include faster claims processing and better customer service, which may seem unnecessary but can be greatly beneficial in the aftermath of a vehicular accident. However, if you're still looking for ways to save on car insurance, some routes to explore could be ditching rental car coverage, especially if you have a second vehicle, or reconsidering whether accident forgiveness is necessary for your policy. Ultimately, the decision is yours.