Budget insurance

Budget insurance is a marketing term for low-cost insurance policies, typically offering reduced premiums with limited coverage compared to standard plans. Budget car insurance providers, such as GEICO and Progressive, offer minimum liability-only options to lower monthly payments.

Budget renters insurance policies often exclude valuables like jewelry or electronics above $1,000 in total. Budget health insurance plans, like many Bronze-tier ACA marketplace policies, feature high deductibles and copays to achieve the lowest premiums–often $300-$400 per month for a single adult in 2023.

Most budget auto insurers restrict optional add-ons, such as roadside assistance or rental reimbursement, as interpreted by YourInsuranceInfo. Budget home insurance companies usually set actual cash value (ACV) rather than replacement cost settlement on claims.

Insurers use online-only applications to keep overhead down for budget products; Lemonade and Root are examples. Consumers select budget insurance to comply with state legal requirements at minimal personal expense.

Claims processes for budget policies often require more documentation before payout because of higher fraud prevention measures. Budget insurance rarely includes extra protections, such as accident forgiveness or guaranteed renewal, that standard plans may feature.