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The Advantages and Disadvantages of Cheap Insurance in Ann Arbor

The most obvious advantage of purchasing inexpensive insurance is that you will have more money in your pocket after paying your insurance bill. There are other benefits of cheap insurance in Ann Arbor that many drivers and homeowners don’t often think about. There are also some disadvantages to only considering the least expensive insurance available.

Advantages

By purchasing cheap insurance, you give yourself the ability to save the money you would need to pay your deductible if you are in an accident. Many drivers go years without having an accident, yet they pay more because they want to maintain a low deductible in case they ever need to use the insurance. By raising your deductible, you can significantly decrease the cost of your policy.

Inexpensive insurance usually has fewer frills than more expensive policies. If you don’t need all the extras, there is no reason to pay for them. Talk to your agent about dropping medical payments or uninsured motorist protection if you don’t drive your car much and aren’t at risk of being in an accident.

Disadvantages

The main disadvantage of purchasing cheap car insurance in Ann Arbor is not having the maximum amount of insurance when you are in an accident. If you scale down your policy and don’t prepare for the unexpected, you may find yourself in an unpleasant financial situation following an accident. In some cases, the victim in an accident can sue a driver for their costs above what the insurance policy will pay.

Another drawback of purchasing cheap car or homeowner’s insurance is the possibility of not having local customer support when you need it. Premium policies often include phone and in-person support for customers. If you understand how home and auto insurance works and won’t need to ask a lot of questions, though, cheap insurance in Ann Arbor can be a better deal for you.

It is important to weigh your options carefully when you select an insurance policy. With thoughtful financial planning, you can save a lot of money on your insurance. Just be sure you are able to cover any damage that exceeds the amount of your policy and that you have an amount equal to your deductible in savings before you choose minimum coverage. Get more information on

 

 

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