Disadvantages of Very Cheap Car Insurance
Reader’s Question:
Is it good to obtain very cheap car insurance?
Angie
New Orleans, LA
Be wary when you are offered very cheap car insurance by companies. This is because vital coverage may be stripped off to accommodate the really low rates. Worse, more often than not, consumers who avail of very cheap car insurance end up knowing this loophole in their coverage a little too late. You would not want to end up with a denied benefit claim after an accident just because you never bothered to check the exclusions of your very cheap car insurance.
It is always a good rule of thumb to buy the insurance that provides at least the minimum amounts of insurance requirements. Car insurance companies in Louisiana are required to cover with $15,000 you for the injuries you might inflict to one person and up to $30,000 if there were two or more victims. Properties you destroy will be repaid at a maximum amount of $25,000. This very recent increase in liability requirements has been implemented in the beginning of 2009. From the 10/20/10 coverage, rates have become more expensive as coverage limits were increased.
Review the amount of coverage that this very cheap car insurance will provide you with. If it does not meet the new requirements of your state, then this car insurance company is obviously not worth your money.
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