No Frills Insurance: Are you paying less? - 03 Sep 2009 00:08
Many an insured has opted for no-frills car insurance to cut down on the costs of premiums. The no-frills insurance has all the basics of comprehensive car insurance, but without all the optional extras or frills. This means that you are covered in the event of fire or hail, theft, accidental damage for your vehicle and claims made by third-parties for damage to their vehicles, but without the roadside assistance, towing or courtesy car luxuries.
Advertised as being cheaper than its ruffled counterpart, no-frills insurance is without fuss and expense. But is it really worth it? And is it really that much cheaper? Because insurance is a game of risk, if you take on more, you pay less. Without the frills you should essentially be taking more risk on yourself – the risk to tow the car to the garage yourself, or find another car while yours is being repaired or pay for your own personal effects in the boot of the stolen car.
By cutting away these added extras you are going to pay more in the event of an accident or theft, but, as is the catch 22 of insurance, you might not need these frills in any case. Make sure that if you decide you to take the added risk on yourself, by reducing the doilies on your insurance policy, that you will be able to recuperate financially – which after all is the point of insurance.
Many an insured has opted for no-frills car insurance to cut down on the costs of premiums. The no-frills insurance has all the basics of comprehensive car insurance, but without all the optional extras or frills. This means that you are covered in the event of fire or hail, theft, accidental damage for your vehicle and claims made by third-parties for damage to their vehicles, but without the roadside assistance, towing or courtesy car luxuries.
Advertised as being cheaper than its ruffled counterpart, no-frills insurance is without fuss and expense. But is it really worth it? And is it really that much cheaper? Because insurance is a game of risk, if you take on more, you pay less. Without the frills you should essentially be taking more risk on yourself – the risk to tow the car to the garage yourself, or find another car while yours is being repaired or pay for your own personal effects in the boot of the stolen car.
By cutting away these added extras you are going to pay more in the event of an accident or theft, but, as is the catch 22 of insurance, you might not need these frills in any case. Make sure that if you decide you to take the added risk on yourself, by reducing the doilies on your insurance policy, that you will be able to recuperate financially – which after all is the point of insurance.