Whether you are shopping for electronics, furniture or a new car, we all love to get the best for our money. The same goes for cheap car insurance.
Insurance companies know that drivers are looking for bargains. This is why many insurance companies advertise low monthly interest rates to convince customers that they are getting a great deal.
But in the event of an accident, the super-cheap car insurance can make you stuck and pay out of pocket for car repairs or hospital bills. Suddenly, the low interest rate is not the bargain you thought it was.
Let's look at where cheap car policies often fall short – and get tips on how to save on your premium with ERIE without compromising on your coverage.
What Are The Disadvantages Of A Cheap Car Insurance Rate?
Decide how much insurance you need is about your budget and your level of comfort with risk. This is why it helps to work with a local insurance agent to help you understand how much coverage makes sense for your lifestyle and financial situation.
When it comes to car insurance, exceptionally low rates should remind us of this simple truth: Sometimes, you get what you pay for.
Here's what you might miss when you buy minimal coverage:
- You can pay more out of pocket later: When you find fault in a wrong accident, you are on the hook to pay for everything your insurance does not covers. The cost of repairs, medical bills or legal fees from a car with multiple cars can get expensive … quickly. Even something as simple as a fender bender can cost thousands of dollars in parts alone.
- You take more risk: Running out of cash to pay for what you are responsible for can save your savings, investments or assets such as your home or car at risk.
- You receive fewer benefits: You usually pay a little extra in premiums for features such as car rental coverage, road service coverage or a reduced deduction. But you will be happy to have the little extras there when you need them.
- It's less personal: A good insurance agent can help tailor your policy with recommendations and other optional additions that fit right. for your life. For example, custom coverage can be useful when you sometimes drive for Uber or Lyft.
Is Erie Insurance Affordable?
Life is about balance. When you are with ERIE, you get your own local insurance agent who can help you find the sweet spot between being kind to your budget and getting the protection you need.
Oh, and discounts? We have & # 39; em. Here are some common discounts on car insurance and ways to save with ERIE:
- Discount on multiple insurances: If you have multiple insurances with ERIE (eg homeowners insurance or life insurance), you may be eligible for multi-policy discounts such as can save 1
- Discount on several cars: If we insure two or more of your cars, you can qualify for a discount. (All vehicles in your household must be owned and used by the driver we insure.)
- Safety savings: You can save on your insurance if your car is equipped with safety equipment such as factory-installed airbags, passive restraint (2), anti-theft devices (2). 3) and locking brakes.
- Young drivers: Unmarried drivers under the age of 21 living with their parents may be eligible for further savings on their car insurance3.  Discount on college students: Let us know if you have a student who does not have access to a car while you are at school and you can get a discount for the time they do not drive.
- Vehicle storage: Why pay for extra coverage on a car that does not move soon? If you store a vehicle for at least 90 consecutive days, you can take advantage of our reduced user discount available in most states.
- Forgiveness of first accident: Everyone makes mistakes. That's why ERIE offers forgiveness for accidents. If you have been a customer for three or more years, we will waive the surcharge the first time you are at fault in an accident. (Good news: There is no waiting time in North Carolina or with the ERIE Rate Protect policy in New York.)
- ERIE Rate Lock®: No one likes surprises on their behalf. With the ERIE Rate Lock® function (4), you freeze your car premium year after year, even if you submit a claim. Your prices will only change if you add or remove a vehicle or driver, change an address or change the policy. (New York customers: Ask about ERIE Rate ProtectSM.)
- Decreasing Deductions: A clean driving record can go a long way. With ERIE's diminishing deduction option (5), available with ERIE Auto Plus® coverage, you will not file a claim each year, your deductible will be reduced by $ 100 (up to a maximum of $ 500). Eligibility varies by state, so contact your agent to make sure you are eligible.
What are (and are not) covered by the state's minimum limits?
Each state has its own laws governing the minimum car insurance you cover must be able to legally drive there. For a list of minimum insurance requirements by category and state, see this chart from the Insurance Information Institute.
Some states may require certain coverages such as personal injury protection (PIP), medical payment coverage or uninsured / underinsured motorist coverage. Liability insurance is required in almost every state, although the amount required varies.
Remember that your liability comes in only after a covered loss, up to the specified coverage limits you have purchased on your policy. In general, here is what to expect:
- What can liability cover? Let's say you drive behind a car in the traffic light or lose control of your vehicle on an icy road. Liability insurance can cover the costs of damage you have caused to other vehicles and property, as well as the medical costs of other people involved in the accident. It can also be used to cover lost wages, pain and suffering, funeral expenses and possibly your legal bills, should the other driver or their insurance company sue you.
- What is not covered by liability? First, do not pay liability insurance to repair damage to your own vehicle. (This is where collision and extensive can help.) If you only drive with the state's minimum level limits, you can also leave yourself financially vulnerable if you are the victim of a hit-and-run (where uninsured motorist coverage may come to play) or compile your new car before you have paid off your car loan (where ERIE's new car safety coverage (6) may have helped).
Do you want more about the basics of car insurance? Read more about the six most common car insurances that are in a typical insurance or four common auto insurance tips to customize your insurance with extra protection.
See if ERIE can offer you a cheaper quote
At ERIE, we & # 39; is eager to provide an insurance experience that is personal, fair and affordable.
Learn more about car insurance or get a free online quote online and contact your local ERIE agent in your area.
(1) All discounts are subject to eligibility criteria and applicable prices and rules at the time of purchase. Actual savings vary. Life multi-policy discount is not available in connection with auto policies that already use ERIE Rate Lock®. Erie Family Life insurance products are not available in New York. For more information, contact your local ERIE agent.
(2) Not Available in Kentucky
(3) Not Available in North Carolina
(4) Rates are subject to change if you adds or removes a vehicle, adds or removes a driver or changes your address or the place you normally park your car. ERIE Rate Lock® does not guarantee continued insurance coverage. Not available in all states. Limited to three years in Virginia. The insured must comply with the applicable warranty instructions. Premium can be changed if you make a policy change.
(5) Deduction deductions are up to a maximum reduction of $ 500. In New York, the total deduction allowance cannot be reduced to less than $ 50 and the collision crash cannot be reduced to less than $ 100.
(6) Vehicles are considered new when you are less than two years old and you are the original owner. The endorsement is sold by vehicle, not by policy, and contains specific details about coverage, conditions, exceptions. Coverage is not available in all states. Eligible vehicles must have both comprehensive and collision coverage and replacement must be done with a comparable model. New vehicle replacement and better vehicle replacement do not apply to rented vehicles. Only repair coverage and auto contract / loan component apply to a rented vehicle. The coverage does not include items such as overdue payments and transfer balances from previous leases / loans, etc. When payment is made during the exchange of new vehicles or better vehicle replacements, automatic leasing / loan coverage will not apply. Not available in NY or NC.