When it comes to something as important as the amount of coverage, going the cheap route may not be what’s best for you.
Ever heard the phrase, “You get what you pay for”? This is true for many aspects of life, and especially so for your insurance policies. The coverage that you pay for is directly correlated to the amount of coverage that you will receive. Going with the cheap option for something as important as insurance could leave you scrambling for ways to pay what you owe in case your coverage is not enough. Here are some reasons why, when it comes to insurance, cheaper is not always better.
High Deductible = High Out-of-Pocket Payment
If you increase your deductible, your insurance premium will drop significantly. While this sounds great, it doesn’t come without a tradeoff. The tradeoff is this: when you get into an accident, you are gong to have to pay your high deductible out-of-pocket before your insurance company steps in to cover the rest of the payment. A high deductible is not necessarily bad; you just have to make sure that you have the funds available to cover it.
Minimal Coverage = Minimal Coverage
The only reason many people get auto insurance is because it is legally mandated by the state. This leads people to choose the cheapest insurance coverage because it saves them more money. However, this may come back to bite you in the end. While you’re satisfying the legal requirements, you may not satisfy your actual coverage needs. If you exceed your coverage limit, the remaining amount will be left for you to pay out of your own pocket.
When it comes to auto insurance in Studio City, it pays to spare a few bucks to make sure you’re covered. The right auto insurance policy will make sure that all of your insurance needs are met and will make sure that, during an accident, your money stays in your pocket. Contact Castroll Insurance for all of your insurance needs.