Most motorists don’t understand the intricacies of policy coverage. They are not confident in judging its wordings or even its provisions and limitations. So, they are naturally a bit cautious when they come across particularly cheap auto insurance quotes and may suspect that something is amiss. Often it is not the case but there is nothing wrong in checking and making sure.
It is a common practice to offer discounts for further restrictions in policies. Or you avoid surcharges by agreeing to certain conditions. They are usually not a problem for most people since it only reflects the correct position they are in. But knowing what the terms and conditions of getting lower vehicle insurance prices helps drivers understand and follow the rules to not complicate things.
Here are some of those possible conditions that may be attached;
Check the Company
It is a very unlikely occurrence that you may be sold a policy from a company that doesn’t exist. Or you may be given a legitimate name but never actually insured by them since the swindlers pocketed the money. This is very unlikely since nobody pays cash to brokers or agents anymore. Possibility of this happening to you can be eradicated by checking in the first place that you are dealing with qualified people and not some shady characters.
Only Listed Drivers
This is actually very common that your policy only covers the people you listed on it as drivers. Actually, there is no point in buying an open-ended coverage if you don’t need it. If you need to add someone for a short period it can be done at a later date as and when needed. Otherwise, only the people listed can drive it.
When you are only doing a certain small number of miles a year you can get large discounts with some companies. There is nothing wrong with this and many people knowingly agree to it because that is all they are doing. Actually, there are even specialist providers that charge you per mile you covered. If it works for you, why not enjoy cheap car insurance in the meantime.
No Business Use
Some companies may come up with no frill coverage plans. Slimming things down helps them offer better prices. This isn’t a strange practice used only by insurance companies. It is commonly used in many other industries. The more you end in terms of products, services and guarantees the more you have to pay. Equally, if you don’t need them why pay.
The whole idea is that standard policies include many things automatically. For people who don’t even claim on the main provisions of a policy it may be an acceptable risk to take.
Actually, it isn’t even a risk to have no business use clause in your policy if there is no chance of it. If you ever need it you can talk to them, get it added and pay the additional premium then. So, there may be some limitations to a cheap vehicle insurance policy but they may be acceptable since you are paying much less.