Whether shopping for electronics, furniture or a new car, we all love getting the most bang for our buck. The same is true for cheap car insurance.
Insurance companies know drivers are looking for bargains. That’s why many insurers advertise low monthly rates to convince customers they’re getting a great deal.
But in the event of an accident, that super-cheap auto insurance might leave you stuck paying out-of-pocket for car repairs or medical bills. Suddenly, that low rate isn’t the bargain you thought it was.
Let’s look at where cheap auto policies often fall short – and get tips on how to save on your premium with ERIE without compromising your coverage.
WHAT ARE THE DOWNSIDES OF A CHEAP AUTO INSURANCE RATE?
Deciding how much insurance you need is all about your budget and your comfort level with risk. That’s why it helps to work with a local insurance agent, like Baker Insurance Inc, to help you understand what amount of coverage makes sense for your lifestyle and financial situation.
When it comes to auto insurance, exceptionally low rates should remind us of this simple truth: Sometimes, you get what you pay for.
Here’s what you might be missing out on when you purchase minimal coverage:
Life is all about balance. When you’re with ERIE, you get your very own local insurance agent who can help you find that sweet spot between being kind to your budget and getting the protection you need.
Oh, and discounts? We’ve got ‘em. Here are some common auto insurance discounts and ways to save with ERIE:
WHAT IS (AND ISN’T) COVERED BY STATE MINIMUM LIMITS?
Each state has its own laws that govern the minimum car insurance coverage you need to 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 might require certain coverages such as personal injury protection (PIP), medical payments coverage or uninsured/underinsured motorist coverage. Liability coverage is required in just about every state, although the amount required varies.
Keep in mind that your liability kicks in only after a covered loss, up to the stated limits of coverage you’ve purchased on your policy. Generally speaking, here’s what to expect:
SEE IF ERIE CAN OFFER YOU A CHEAPER QUOTE
At Baker Insurance Inc, we are eager to provide an insurance experience that’s personal, fair and affordable. We write with some of the top insurance carriers in the business to find a solution that's right for you.
Learn more about auto insurance or get a free online auto quote and get connected with Baker Insurance Inc.
1 All discounts are subject to eligibility criteria and applicable rates and rules at the time of purchase. Actual savings vary. Life multi-policy discount is not available in conjunction with auto policies already taking advantage of ERIE Rate Lock®. Contact your local ERIE agent.
2 Rates subject to change if you add or remove a vehicle, add or remove a driver, or change your address or the place you usually park your car. ERIE Rate Lock® does not guarantee continued insurance coverage. Not available in all states. Limited to three years in Virginia. Insured must meet applicable underwriting guidelines. Premium may change if you make a policy change.
3 Diminishing deductible is up to a maximum reduction of $500.
4 Vehicle is considered new when less than two years old and you are the original owner. The endorsement is sold on a per-vehicle basis, not per policy, and contains the specific details of the coverages, terms, conditions and exclusions. Eligible vehicles must carry both comprehensive and collision coverage and replacement must be made with a comparable model. New vehicle replacement and better vehicle replacement do not apply to leased vehicles. Only repair coverage and auto lease/loan component apply to a leased vehicle. Coverage does not include items such as overdue payments and carry-over balances from previous leases/loans, etc. When payment is made under new vehicle replacement or better vehicle replacement, auto lease/ loan coverage will not apply.