Although cheap insurance may seem practical especially in this economic crisis, getting the cheapest plan as possible to cover your vehicle is not always a wise choice. A cheap insurance most likely excludes some major coverage, so in times of need there’s a good probability that a problem will arise.

A cheap price stands for the same product or service, in auto insurance for example, if you acquired the cheapest insurance plan for your vehicle you may be up for disappointment when an incident happened and you need to make a claim. No matter how careful or prudent you are in driving, there’s no guarantee that you’ll always be safe in the road; there is and there will always be accidents, either due to fortuitous event or because of reckless and irresponsible drivers.

Although it might seem to be okay for old or low value cars to be subscribed to a cheap car insurance that has basic inclusions in the policy, it might be wise and sensible for brand-new car owners to get a more pricey comprehensive insurance which includes additional protection and coverage for your added peace of mind. Getting cheap insurance for your vehicle does not give you a guarantee that all the injury or damage to any property during accident will be covered; collision insurance or guarantee, for example, is an important coverage which is not included in a cheap car insurance policy.

Cheap car insurance leaves out important coverage so in the event that a typhoon or storm hits and damages your vehicle, your insurance company will most likely not cover the damage. Your windshield when broken due to trouble in the neighborhood will likewise not be covered. Also be careful where you park your car, cheap insurance usually exclude coverage for theft or stealing of your belongings or your car itself.

Another disadvantage of cheap auto insurance is that during a road accident it will not cover underinsured or uninsured drivers, so once you’re involve in accident to an uninsured motorist the cost of repair will probably be coming from your own wallet. Your passengers, if any, will also not get injury compensation or medical remuneration and you may not be able to get a service vehicle while yours is under repair.

Companies offering cheap insurance packages may not be stable, so if you’re thinking of getting one for your vehicle it’s a sensible idea to ask around and get as much background as you can before you affix your signature on their contract.