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The “Real Cost” of Discount Automobile Insurance

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Pegasus Legal Funding LLC, (Pegasus) the legal funding company, is concerned with the current state of motor vehicle insurance and the fact that a variety of “discount” insurance providers are selling consumers insurance policies that offer a low, and in most cases, minimum amount of required coverage. It was announced last week that Walmart has recently joined the pool of discount insurance providers in a partnership with AutoInsurance.com.

The partnership as reported will allow customers to comparison shop for auto insurance on AutoInsurance.com’s website, comparing the prices at several insurance companies with the consumer’s current insurance policy.

In our experience, many discount insurers offer consumers policies that appear to be a “good value”, but in reality that is not always the case. Most often the policy can be problematic because it offers minimum liability protection and no protection in the form of uninsured/underinsured motorist protection. As such, individuals involved in auto accidents with motorists that have minimum polices will also have limited recourse for injuries sustained in the accident. In the wake of the new announcement it is anticipated that the new “discounted” automobile insurance offered by Walmart will no doubt add to the growing number of under insured motorists on the road.

“We see many of our clients going through what apparently many people across the country experience. Insurance companies notoriously attempt to withhold money from customers within the bounds of the law from those who deserve compensation for their injuries. In fact, many of our clients are unaware that they could have pursued a claim against their own insurance policy if they had purchased the available coverage” said Pegasus’ Account Services Manager, Jessica Simpson.

Pegasus has been on the forefront of providing advances for motor vehicle accident cases. They have experience dealing with automobile insurance providers and are versed in uninsured/underinsured insurance coverage.