Personal requirements and preferences of motorists are the most important factors in choosing a policy. Every person is different as well as their circumstances and the way they look at risk. Some love risk and cannot have enough of it while others cannot sleep at night if they don’t have good insurance coverage.
Essentially you may be a type of a person who would want to sell your largest risks to insurers and ignore the small ones. You may have other provisions for small damages to your automobile like savings. This may be a smart solution in many aspects. If you buy a bare bone policy for your needs you can get them cheap for many reasons.
First of all most companies would offer them and therefore you would have plenty alternatives. Secondly they would be cheap as they are only covering the large losses. Small claims are overrated and costly for auto insurers. Most of them claims are small and dealing with them can cost as much as the claim itself. If the company doesn’t pay attention to them they may open a whole in their system for increased number of fraudulent claims. Therefore, they need to appear to be checking and going through them carefully.
Now, you save some money because you found cheap auto insurance policy. You can put these savings to a separate account to pay for small damages and use it for auto expenses. This is a great way of managing your risks and work well for many people. This method is great for several other reasons.
When you don’t cover small damages or set a high deductible to lower premium you are less likely to make a claim. When a policyholder doesn’t make a claim he/she gets further discounts at every renewal time. This would bring down your costs even more. If you suffer a small loss you can pay it out of the said savings. If you don’t you get to keep all of them.
You may know all that but you may be a type of person that gets disturbed when there are uninsured risks in your life. Some people hate taking risks and they want to know what would happen each time. Then, you may not care how much it will cost and like to be insured properly.
There are policies that are designed to serve everybody and be cheap. They are the weapons of a competitive vehicle insurer. These policies would pay for the repairs but may not offer anything fancy. For example, they may not offer a rental car while yours is in the garage. They are cheap and there are good reasons for it.
The same company can offer you a more detailed and inclusive coverage. They don’t want to lose applicants that are looking for something a bit more sophisticated products. As long as you have money you will find companies that are happy to even tailor made products for you. So, depending on your preferences your policy choice will be different than another guy of same details.