Many people think of buying a cheap car insurance policy because it is another bill you have to pay to drive. Often it is because the value in protection has never been fully explained. Those who actively search terms like “cheap car insurance in Dallas” get just that; cheap coverage, cheap service, and an over-all sub-par experience.
For years, I purchased liability only insurance policies. I figured that auto insurance was just something I needed to get my car on the road. Inspection, registration; If it involved paperwork, it was all the same. I understood to an extent, after years of watching insurance commercials, that there is a certain degree of protection. The understanding was if I ever get in a wreck “they” would take care of it as long as I pay them monthly. Ah, the feeling of bliss resulting from naive ignorance was like a cloud that carried my car through the streets of Dallas.
Insurance guidance came at a time when I least expected it, almost by accident. I was a young manager in training at a popular jewelry store closing down for the night with another associate. He was much older and had dreams of opening his own business. He had explained to me that his auto insurance would pay ten thousand dollars if he was hurt in a car accident. I did not believe him at first.
I asked myself, “Why hadn’t I heard of this magical coverage that pays for my injuries?” Then he told me everybody (insurance companies) in Texas has to offer that coverage. He also said that I should ask for that coverage and see what happens.
A couple of months later I am on the hunt for cheap insurance again. Because my cheap car insurance was never cheap enough; and rates continued increasing (as they always seem to just like minimum wage and the cost of living). Except this time, I went into the cheap $39 per month car insurance office armed with one question in mind, “How can I get that extra $10,000 PIP option?”
My quest to get the cheap liability policy led me to a room with a half-assembled motorcycle, a worn-out futon for waiting guests, and a window unit that loosely fits into a cutout in the wall that separates 2 offices. At least there was a beautiful woman with a thick accent in front of the computer waiting eagerly to take my money.
As we go through the auto insurance application process, I realize that her insurance advice was simply to initial here, here, there, sign here, and give me your money. Before signing “here”, I asked about the ten thousand dollar coverage question. The beautiful woman sighed and showed me the paragraph which I initialed stating that the agent explained PIP and I fully understand PIP coverage, but I chose to reject it. (Remember, all I did was initial there!)
“OK, what is $10,000 pip?” I asked. She might have properly explained the coverage, but the words got trapped in the accent. At the time I didn’t mind. Interestingly enough, she made it clear that my monthly insurance would increase by adding personal injury protection. At that point in my life, it was all I needed to know to make that decision. Ignorance wins again. Good thing I wasn’t injured in an accident.
Unfortunately this is all too common in the insurance industry. Some agents treat car insurance policies like the military’s “don’t ask don’t tell” rule. If the customer doesn’t ask you for it, don’t tell them about it. This results in consumers being grossly uninformed and underinsured. Agents like this believe that since a consumer asked for the cheapest insurance policy, they must want to reject c overages like personal injury protection, no questions asked.
The truth is that as a consumer, the right company will give you a good rate for your liability auto insurance and personal injury protection. As a consumer, it is your right to ask questions regarding coverage. Purchasing auto insurance just because it is cheap could cost you money in the long run. Learn from me, before you initial there, and sign here, ask your insurance representative the following question, “What do you mean by cheap car insurance, and why is it so inexpensive?”