Budget Car Insurance – Cheap & Affordable Insurance For Those on the Road

When you are looking for car insurance you would be looking to see the various advantages and benefits that the insurance company would be offering apart from just the insurance service. The interested person would be looking at all that the insurance company would be giving away for free or for a nominal price along with the insurance policy.

Honestly, no insurance company can pile up add-on bonuses on an insurance policy that has a low premium rate on offer which are the budget car insurance policies. In these policies there are no additional facilities like a standby vehicle in the case of a break down, free emergency repairs if stuck on the highway and tow away services. In fact some premium car insurance policies provide lodging and boarding facilities to the buyers of these policies if the driver is on the highway at sundown and is looking for rest.

A budget car insurance policy is meant for those drivers who cannot afford high premiums and at the same time have to be on the road with their vehicles. They are generally students who do not have direct means of earning a living, and low income group taxi owners and drivers who are driving their vehicles for hire. Budget car insurance gives the policy holder an idea of what a basic policy would be. Generally these are not comprehensive insurance policies but are pure third party insurance coverage that covers private and public property in the case of accidents and the co-passengers of the vehicle.

Premium payable on these car insurance policies just cover the basic statutory rates. They do not go beyond the statutory rates by a wide margin. This does not mean that the insurance companies are not earning revenues out of these budget car insurance premium earnings. They do make a profit but these are just basic in nature. In the unfortunate event of an accident occurring in which the car is badly damaged, the insurance company is legally bound to cover the costs and if the costs are more than the premium earnings, the insurance company bears the loss. Not many insurance companies provide for these insurance policies. Also, in areas dominated by a large population of truck drivers and taxi drivers, these companies try to sell these policies to gain the benefits of economies of scale. More the sales of these policies better would be the revenue potentials.

Pungky Dwiasmoro Hiswardhani

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