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Crash Test

How much could cheap insurance cost you? You're a responsible driver, but accidents happen. Say you're driving along in heavy traffic and briefly take your eyes away from the road to change your radio station.

When you look up, traffic has suddenly stopped! You slam on the brakes but still hit the red car in front of you, pushing it into the gray car at the front of the line. Unfortunately, you are 100% responsible for the accident...but that's what insurance is for, right?

Out-of-Pocket
$0

The front end of your car is badly damaged and the vehicle is not drivable.

Your repair estimate is $8,700.

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Out-of-Pocket
$0

If you have a $1,000 collision deductible, how much would this cost you?

Nothing, the damages would be fully covered by my policy
$500
$1,000
$8,700

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Out-of-Pocket
$1,000

Answer: $1,000

Cheap insurance often comes with high deductibles, up to $1,000 or even more. So you would be responsible for $1,000 of the damages to your own car. A manageable amount perhaps...but there's more.

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Out-of-Pocket
$1,000

The shop tells you they'll need at least two weeks to repair your car.

In the meantime, you still need a way to get around. You don't have an extra car, so you'll have to rent one for two weeks, at a cost of $30/day ($420 total).

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Out-of-Pocket
$1,000

If your policy does not include rental car coverage, how much would this cost you?

Nothing, the rental car would be covered by my policy
$30
$420
$1,000

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Out-of-Pocket
$1,420

Answer: $420

Cheap insurance usually doesn't include rental car coverage, so you'd be responsible for paying all of the rental car charges. Costs are starting to add up!

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Out-of-Pocket
$1,420

You're in a rush one day and accidentally lock the keys in the rental car when you run into the grocery store.

You have to call a locksmith to get the door opened for you, for a charge of $75. Just what you need when other unexpected expenses are really piling on.

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Out-of-Pocket
$1,420

If your policy does not include towing/road service coverage, how much would this cost you?

Nothing, the charge would be covered by my policy
Nothing, the charge would be covered by the rental car company
$25
$75

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Out-of-Pocket
$1,495

Answer: $75

The coverages from your auto policy typically transfer to your rental car (if you don't pay the extra money for insurance from the rental car company.) But! Since cheap insurance usually doesn't provide coverage for towing and roadside assistance, you'd be responsible for the $75 charge.

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Out-of-Pocket
$1,495

Now let's talk about the other two cars.

The red car has pretty severe damage to both the front and rear ends. A claims adjuster deems it to be totaled, and values the red car at $19,000.

The gray car has about $9,000 worth of damage to the rear end.

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Out-of-Pocket
$1,495

If your auto policy had property damage coverage of $25,000, how much would this cost you?

Nothing, my $25,000 coverage applies to each damaged car
$1,000
$3,000
$25,000

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Out-of-Pocket
$4,495

Answer: $3,000

Since you were 100% at fault in the accident, you would be responsible for all the damages to both cars.

Cheap insurance means your coverage for damage to other people's property is probably low - maybe $25,000, possibly as low as $15,000. In this accident, the combined damage to both cars was $28,000. Your $25,000 coverage is the total limit per accident, not per vehicle, so you would be responsible for $3,000 out of pocket.

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Out-of-Pocket
$4,495

The drivers and passenger of the other two cars were all injured and taken to the hospital. A few months after the accident, you find out what their medical bills are.

From the red car...

  • The driver suffered broken ribs, a concussion, and a prolonged neck injury that required months of treatment.
    Total medical costs = $20,000
  • The passenger required surgery to correct a back injury.
    Total medical costs = $32,000
  • Both sued for pain and suffering.
    Total court award = $50,000

From the gray car...

  • The driver was treated and released.
    Total medical costs = $1,000

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Out-of-Pocket
$4,495

If you had liability limits of $20,000/$40,000 for injury to others, how much would this cost you?

Nothing, the injuries would be covered by their own insurance
Nothing, the injuries would be fully covered by my auto policy
$12,000
$63,000

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Out-of-Pocket
$67,495

Answer: $63,000

Since you were 100% at fault in the accident, you would be responsible for all the injuries in both cars.

Cheap insurance often comes with minimum liability coverage, such as $20,000/$40,000* - which means you have coverage for a max of $20,000 per person, with a total limit of $40,000 per accident.

In this scenario, the total medical costs were $103,000, so you would exceed your policy limits by $63,000!

* Minimum liability requirements vary by state.

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Take a look at what cheap insurance would cost you. And compare that to quality coverage that has your actual needs in mind.

Expenses

Cheap Insurance Coverage

Your Out-of-Pocket Cost

Quality Insurance Coverage

Your Out-of-Pocket Cost

Damages to your car: $8,700 $1,000 collision deductible

$1,000

$500 collision deductible

$500

Rental car costs: $420 No rental car coverage

$420

Rental car coverage of $40/day; $800 max

$0

Locksmith: $75 No road service coverage

$75

Road service coverage - $100 per incident

$0

Damages to other cars: $28,000 Property damage limits of $25,000

$3,000

Property damage limit of $100,000

$0

Injuries and pain and suffering: $103,000 Bodily injury limits of $20,000/40,000

$63,000

Bodily injury limits of $250,000/500,000

$0

Your Out-of-Pocket Total Expenses

$67,495

$500

 

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Has your insurance company explained the hidden costs of cheap insurance?
COUNTRY Financial® does. Bring in your current policy and we'll make sure you have the coverage that's right for you.

Find a financial representative in your area and get a quote today!


Auto policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Preferred Insurance Company®, or COUNTRY Casualty Insurance Company®, Bloomington, IL.

Coverage limits vary by state.

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For illustration purposes, the information contained here relies on certain assumptions of coverage. This information is not intended nor should it be construed to replace any provision of your insurance policy. The coverage you have is determined by the information on your Declarations page on the date of loss, together with the policy and endorsements in effect at the time. If there is a conflict between the insurance policy and the information contained here, the policy shall control. In addition, should you make a claim on your insurance policy, coverage will be evaluated by application of the policy language to the facts of the claim.
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