No matter how you look at it, things are tight as far as home budgets are concerned. You need to save money when and where possible. The thing to remember though is that when it comes to auto insurance though there are definitely times when saving a bit of money can come back to bite you. Listed below are four instances in which an inferior insurance policy can be a severe hindrance or can even lead to financial ruin.
Unexpected Death
While no one likes to think that they will simply pass away with no notice, it does happen every day. In this case, if you don’t have a decent life insurance policy in place your family could be the ones to suffer the fallout.
Also, keep in mind that life insurance rates can be a great deal cheaper if you opt in at an earlier age. The older you get, the more expensive it can be.
Lawsuit Due to Injury Sustained on Your Property
A homeowner’s policy can sometimes seem expensive, but by cutting corners and selecting minimum coverage you could be placing yourself in a tight spot. In the event that someone gets hurt while on your property you could be open to a lawsuit. This even applies if they are on your property without your permission.
While the rule of thumb may be the more property you have, the more liability you should carry, it is important to speak with a trained insurance specialist who can help advise you on an appropriate level of coverage.
Hit by an Uninsured Motorist
The law in most all states says that drivers must be covered by a certain level of auto insurance. This does not mean that everyone carries such coverage. By leaving off on uninsured motorist coverage you can be placing yourself in the position of responsibility by having to cover your own damages.
When you compare the average yearly cost of uninsured motorist coverage with the amount you may have to pay in the event of such an accident, the need for such becomes quite clear. Another type of coverage, underinsured motorist, can also come in handy when faced with someone who has purchased too little insurance.
Car Rental Following an Accident
Many of us today do not have a spare vehicle that we can drive in the event that our main one is damaged in an accident. This means that you may be faced with having to rent a car until your own can be repaired or replaced. While some auto insurance policies may cover reimbursement for a rental, not all will do so. This is usually offered as an option which people tend to pass up.
Take a few moments and figure up the amount you would pay out of pocket for a rental in the event of an accident. Suffice to say that you would be much better off opting for the additional rental car coverage especially if repairs will take any length of time.
While there are more than just these four instances, these alone should make you stop and think before deciding to opt for the cheapest possible policy or before turning down options that could help save a great deal more in the long run.
