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Cheaper is not always better for insurance

On Behalf of | Nov 16, 2019 | Insurance Matters

Auto insurance is one of the biggest monthly expenses of owning a vehicle in California. For some people, their monthly insurance payments are even higher than their car note. It is no wonder then that so many people are attracted to insurance ads promising them lower monthly payments. What many insurance companies do not explain is that the price of that lower premium is less coverage.

Drivers often figure this out the hard way when they have an accident. One of the most upsetting situations is when the accident was caused by an underinsured or uninsured driver. The driver may be a teenager not covered under their parents’ car insurance or a working adult who simply made a late payment on his insurance because of a recent job change. Whatever the reason, the insured driver gets stuck with the bill. Now what?

MarketWatch points out that uninsured or underinsured insurance coverage may help. When drivers have this type of coverage their own insurance company foots the bill. In fact, most states — including California — require this type of insurance coverage, though the limits are so low that the driver may still end up needing to pay whatever the insurance company did not cover. Drivers may wish to seek higher coverage limits to ensure real protection.

NerdWallet explains that uninsured motorist coverage pays for medical injuries the driver or their passengers may suffer in a crash. For damage to the car or other property, there is uninsured motorist property damage coverage. Because of this, drivers who have this type of coverage may wish to clarify with their insurance company if they have one, both or even neither.