My office is in east Dallas one of the melting pot areas of the metroplex. Across the street on both corners are two insurance agencies which advertise car insurance for as little as $25 to $30 a month. You may wonder if it’s a sweetheart deal that no one really gets, so I thought I’d answer the question in this post which wraps up a look at liability oriented car insurance. The answer is yes, no, and what are truly getting or giving up!
Yes, you really can purchase car insurance for as little as $25 to $30 a month. In the post I wrote two weeks ago, I contrasted full coverage versus liability insurance. Pure liability car insurance only carries bodily injury property damage coverage. There is no uninsured motorist, medical or personal injury protection, no roadside assistance, or rental car reimbursement (see https://wiseinsurancegroup.com/full-coverage-vs-liability-car-insurance/). Neither is there any comprehensive or collision coverage which is represented by a deductible.
This type of coverage is typically reserved for a cash car when if wrecked, you’re able to walk away from without any regret as you would over the loss of a disposable pen. It also means you are carrying the lowest possible limits in Texas which are 30/60/25. These numbers mean if you hit someone and are found to be at fault, the policy will pay up to $30,000 for medical care per person with a maximum of $60,000 total and $25,000 for damage to the other car. I only write these limits for clients who are struggling financially because even a new Honda Civic can cost more than $25,000
No, not everything is covered, as I mentioned above. If you do want uninsured motorist coverage, protection for a stolen car, or roadside assistance, you’ll need to add that. Add that coverage and your monthly rate will be more than $25 or $30. You obviously can’t get full coverage for that amount either which the finance or lease company will require if you are still making payments for a loan or lease.
Aside from giving up additional coverage you may want, the question is how well will such a company handle a claim. Some will handle them better than other companies. If you’re curious about who handles them well and who doesn’t, check out the Texas Department of Insurance’s web page, http://www.helpinsure.com//auto/index.html and click on company information chart. You’ll see who writes car insurance in Texas, their A.M. Best rating, and even their complaint index (anything over a 2 may be problematic).
Keep in mind, if you truly want and can live with pure liability insurance, you can buy it affordably from even the major companies and that may be just the peace of mind you want! What do you think? Share your thoughts, questions, and experiences with me on my Facebook, Google +, and LinkedIn pages. I’d love to hear from you!