People have a bias against cheap products or services. They instantly assume that just because something has a low price that its quality must be inferior. Auto insurance services too have been judged by this criterion. What do I think? Is cheap expensive? Read the rest of the article to find out. I will outline both the pros and cons of cheap auto insurance services, Safe way auto insurance and give you my answer at the end of the piece. What does “cheap” mean? When I say cheap auto insurance I have several scenarios in mind: • A company that offers cheap policies. • When a client pays the minimum requirement. • When a customer under insures, that is, it does not cover all the main risks – for instance, not covering the members of his/her household. Pros 1. Excellent Customer Service Smaller companies have less to lose. They treat drivers like family members, making them feel completely at home. 2. Attractive Prices Lower prices attract more customers, which ensures that the company is always operating, and always has a cash flow, even during hard economic times. 3. Faster Savings In contrast to more expensive companies, drivers will see the savings in their budgets quicker. This is because they are paying less for insurance. Cons 1. Low Protection Level A client who takes out one coverage plan, but fails to take other just as crucial policies, is not safe from risk. For instance, a client who has taken limited liability protection, but lacks collision coverage or personal injury protection. When an accident covered by the policies he neglected to take occurs, he will suffer the consequences by paying through the nose for the unexpected expenses. It could bankrupt him. 2. Increased Liabilities Most states have a minimum requirement amount with regards to auto insurance which they require all drivers to take. If a driver obeys this, but only up to the minimum and nothing more, he is exposing himself to severe risks in future. For instance, if the minimum requirement is $10,000a and that’s all the driver does. Car accidents are rather expensive, and in case of both bodily injury and vehicle damage, the costs could be as high as $50,000 and even more. In such a case, the client will have to fork out $40,000 out of pocket. 3. High Deductibles For most insurance companies, this rule holds true: that the lower the cost of auto insurance, the higher your deductibles. That means, in the end, choosing the cheap deal will prove counter-effective. Last Words Cheap is expensive – that’s the truth. In the real sense, it’s cheap today, but tomorrow it takes out money from your pocket. Cheap today, expensive tomorrow. Paying for something more expensively today will give you peace of mind tomorrow, while today’s cheap product will only drive you nuts in the last analysis.