I understand why people look for the cheapest insurance option. In today’s economy, everyone is looking for ways to save money, and on the surface, insurance all looks pretty similar. If nothing ever happens, it’s easy to feel like you’re paying for something you don’t really need. And I’ll be the first to admit: I’m not always the cheapest, especially when it comes to auto insurance.

Unfortunately, I see this play out all the time. People switch to a lower-cost carrier thinking they’re making a smart financial move, only to realize later that the “savings” came with more confusion, more stress, and more responsibility falling back on them.

I’ve even had longtime clients leave for a cheaper option and then come back later because they felt lost. They were constantly talking to a new person, repeating their story, and trying to figure out what was actually covered. In the end, saving a little money didn’t feel worth the time and energy it took to manage everything on their own.

And that’s just one piece of it.

Here are some other things I often see with lower-cost auto policies and why they don’t always hold up when you actually need them.

• Lower liability limits
  Liability coverage helps protect you if you’re responsible for an accident that causes injuries or property damage. Many lower-cost policies stick to the state minimum limits ($30,000/$60,000/$15,000 in California) because it keeps the premium down. The issue is that serious accidents are expensive. If damages exceed your policy limits, the insurance company stops paying, but the bills don’t stop. At that point, the remaining costs fall back on you.
  
  

• Higher deductibles
  Some policies look affordable because you’ve agreed to pay more out of pocket before insurance steps in. This can work if you’re prepared for it. But when something actually happens, people are often surprised by how much they’re expected to pay upfront. What felt like savings over time can disappear very quickly in a single claim.
  
  

• Little or no protection if the other driver isn’t insured enough
  Not everyone on the road carries enough insurance—or any at all. If you’re hit by someone who's uninsured or underinsured, your own policy may be the only thing standing between you and thousands of dollars in expenses.
  
  I’ve experienced this firsthand. Years ago, when my daughter was in college, an underinsured drunk driver slammed into a row of parked cars. Her car was one of them (thank goodness she wasn’t in the car at the time). Her vehicle ended up in the shop for months, and without the right coverage in place, the cost of repairs and transportation would have fallen entirely on our family—even though the accident wasn’t my daughter's fault. Instead, our policy stepped in where the other driver couldn’t.
  
  

• Limited or missing medical coverage
  Cutting back on medical coverage can reduce your premium, but injuries don’t come with small price tags. Even minor accidents can lead to doctor visits, physical therapy, or time off work. When medical coverage is missing or minimal, those costs can add up quickly—and they’re yours to manage.
  
  

• No rental car coverage
  Many people assume rental car coverage is automatically included. It isn’t. And you’ll rarely find it in a cheaper policy.
  
  If your car is damaged and needs repairs, you still need to get to work, run errands, and live your life. Without rental coverage, those costs come straight out of your pocket.
  
  I was reminded of this recently when my neighbor was talking about a recent accident. While stopped at a red light, her vehicle was rear-ended. Her vehicle was undriveable while the shop was waiting for parts. She had opted not to include rental reimbursement coverage and, as a result, she had costs close to $1,000 by the time her vehicle was repaired—money that she had not planned on spending.
  
  This is a small line item on a policy, but it makes a big difference when something goes wrong, especially when repairs take longer than anyone expects.

The bigger picture is this: when a policy is built only to be cheap, more risk usually shifts onto you. Those gaps aren’t always obvious upfront—and by the time they show up, you don’t have the option to fix them retroactively.

My goal isn’t to sell the most expensive policy. It’s to help people understand what they’re actually paying for, what’s being left out, and whether that tradeoff truly makes sense for their life. When coverage is thoughtfully put together, it tends to feel calmer, clearer, and easier to manage, especially when something unexpected happens.