There are several national insurance companies promising to provide the cheapest auto insurance rates. Their ads are everywhere: television, radio, internet, and in print. The easiest way for them to do this is to simply cut out pieces of your coverage. Less coverage equals a lower premium.
The standard Massachusetts automobile insurance policy includes several categories of coverage. Some categories of coverage are required by law (known as “compulsory” coverage), but there are some types that you should really have but are not required. Unfortunately, the only time you will ever realize this is if you have a claim.
One trend we are seeing from the national discount auto insurance carriers is that they often issue policies with a Personal Injury Protection (PIP) deductible. Adding a PIP deductible typically saves a policyholder $34.00 per year. In exchange for this nominal amount of savings, the policy cuts out a minimum of $2,000.00 in medical bill coverage and up to $8,000.00 in medical bills and/or lost wage benefits for people involved in car accidents.
There are other traps for the unwary involved with buying discount car insurance. Your best bet is to consult an independent agent or attorney before buying auto insurance. If you have questions regarding auto insurance, contact us today.