Reader’s Question:

Hello there! I got very cheap car insurance. After getting involved in a minor accident, I soon made efforts to make claims. To my surprise, the insurance company did not heed my claims. Can you give me some advice?

Rita

Clearwater, FL

Greetings, Rita! I am sorry for your misfortune. Though I am saddened by your situation, I cannot do much on helping you make your claims because it is an exclusive agreement between you and the said company. I just hope that your situation serves a lesson to you and the other first time buyers and make use of it as a guiding tool for purchasing their preferred policy. With very cheap car insurance, it pays to read the fine print.

Before you buy your preferred insurance policy, you should read, and read, then read again about your contract and agreement on terms and conditions. Discuss with your insurance agent the things that need clarity. There should be a well-defined and concise agreement, terms and conditions on the contract. Validity of coverage should be indicated in writing and there should be transparency between agreements.

Do not fall for very cheap car insurance to avoid rip-offs. If you are considering buying very cheap car insurance, make sure that you check your insurer’s financial stability for providing claims and losses. You can always assume that there are many scams happening out there particularly in insurance. It is only appropriate that you check the insurance companies if they are accredited by the Insurance Department. You should also look for possible drawbacks or pitfalls or discuss exclusions that are not clear to you. These should be your first and major priority when considering on buying car insurance. Doing the proper background checking should be put on top of your to-do list.