Price seems to be a deciding factor for many car owners in Massachusetts. It’s certainly understandable. Although the economy has improved, we’re all still conscious of how much we spend and save. However, cheaper auto insurance can actually cost you more in the end. How? Here’s a look at why cheaper auto insurance might not save you money.
A cheaper auto insurance policy may mean less coverage for you. In the state of Massachusetts, there’s a minimum requirement for auto insurance. This does not mean you should buy only what is required. For instance, collision (which covers damage to your vehicle) is optional coverage. If you leave this off in order to save money, your car might not get repaired if you are at fault for an accident. Unless you can afford a total loss on your car and easily buy a new one, you should purchase collision coverage. Otherwise, the cost to you would be much more in the case of an accident.
Another way to save money is to select a higher deductible. For instance, instead of $500, you might opt for $1000. This might save you just a little bit each month. However, all it takes is one accident for that minimal savings to go down the drain. Instead of saving, you would be paying a lot more in the form of that higher deductible.
Increased Personal Liability
In addition to selecting what is covered under your Massachusetts auto insurance policy, you can also determine how much coverage to purchase under each category. For example, let’s say you select the minimum of $20,000 per person, $40,000 per accident, for bodily injury to others. In a serious accident, could medical bills add up to more than $20,000 for one person? It absolutely could? And what happens in that case? Injured parties could sue you and make you personally liable for any amounts not covered by your insurance policy. For very little money, you can increase your coverage limits and reduce the chances of this happening. It could save you a lot of money in the end.
Summary of Why Cheaper Auto Insurance Might Not Save You Money
As you can see from the above examples, your attempt to save a little money on insurance premiums might cost you big money in an accident. Look beyond the price when purchasing Massachusetts auto insurance. The whole point of insurance is provide a level of financial protection. If you skimp on your insurance, you are leaving yourself vulnerable. Instead, find a comfortable balance between price and coverage. Additionally, don’t forget to consider the reputation and service of the insurance company that you select.