Everybody likes to save money. “Discount” is becoming a new way of life. Many companies are representing themselves as the exact same thing as larger, more expensive companies, but with lower rates and more reasonable terms. Of course, this cheaper discount price does come with a cost. With auto insurance, the cost is usually unnoticeable until you have a claim.
Discount auto insurance, just like all other insurance companies, have specialized individuals to weed out fraudulent claims. However, the reduced resources that cheap auto insurance companies are saddled with means that legitimate claims may sit for months without their due attention. This means months without the resources to fix a damaged car and months without transportation. In many states, accident damage must be fixed to an acceptable degree before a state inspection can be passed. This means that in the event that the insurance company hasn’t even reviewed a claim after several months, accident damage must either be fixed before state inspection is due or the car will have to sit idle while waiting.
Unfortunately, no states have any kind of mandate on how quickly an insurance company needs to act on a claim, so if you have to wait months for a claim to be done, the auto insurance company is well within their legal right, and you have discovered one of the things that makes that insurance cheap.
Discount auto insurance will do little more than keep a car on the road with the very basic of legal requirements. While everyone wants to save money, the cheapest isn’t always the best value and can often end up costing consumers more in the end than middle priced auto insurance. Getting the most insurance for as little money possible is a natural goal of everyone.
