Cheap car insurance is something that belongs on a list with cheap parachutes, cheap seatbelts, and cheap wigs. Don’t get us wrong – we love a bargain as much as the next person. But, when the going gets tough, you don’t want the cheapest version of anything to be your only hope.
So, now that the drama is out of the way, let’s get back to car insurance. If you’re thinking that cheap car insurance is fantastic just because it’s cheap, think again. Here are some of the drawbacks when it comes to bargain-bin insurance.
The downsides of cheap car insurance
1. Less cost, less cover
Many companies will offer dirt-cheap prices because their service isn’t worth very much. It’s common to see cheap policies being very light on their deliverables, meaning that you get next to no cover for your money.
So, while you think you’re covered, you might only have protection for minor incidents (like, say, vandalism) and could still find yourself with a huge bill if you’re involved in an accident.
2. Higher excesses
To keep their premiums down, many cheap policies will drive the excess way up. This means that the amount you contribute to any claim is much higher. This is a good way to save money on car insurance, but be sure that you can afford the higher excess before committing to the policy.
3. Less dependability
Cheaper policies are often offered by companies that have little to no reputation and no track record to speak of. These companies pose a risk in that you simply don’t know if your claims process will be simple. Some insurance companies do anything they can to make sure claims are never paid out, so you might find your claim thrown out for a trivial reason.
4. Undesirable terms and conditions
Some cheap insurance policies may keep their costs low by making certain, non-debatable demands. For example, you might only be able to take your car to one of their repair centres, which could void your car’s warranty and mean that your vehicle becomes the unfortunate victim of some less-than-spectacular repair work.
Choose Hollard for great, affordable car insurance
When looking for car insurance, it’s best to look at more than the price. You want a policy from an insurer that can offer you great benefits and peace of mind. That being said, you still don’t want to pay an arm and a leg for your policy.
So, where can you find an insurance company that offers you quality service at an affordable price? Right here!
Hollard has been at this for a long time, which has allowed us to refine our service offering. That means you get excellent, dependable cover at a price that really won’t break the bank.
To find out more about our awesomeness (ahem, if we do say so ourselves), give us a shout today!
