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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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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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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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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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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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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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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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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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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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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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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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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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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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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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.

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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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