The only reason to get cheap auto insurance is so that you can save money in the long run.
But like anything that you buy in life, you get what you pay for. You naturally want to get the best price and service for your money, but what is not a well known fact is all the factors that can actually make choosing a cheaper alternative that can be much more costly for you in the future.
Reason 1: What are you covered for?
Your eyes have probably lit up at the cheap price that you’ve found on the web, so much so that you might not be fully aware of exactly what you’re buying. You need to do a lot more research than just of price alone. For example if your insurance doesn’t meet your state’s minimum requirements for insurance coverage then your cheap liability coverage is actually making it illegal for you to drive! And what about your own car…
With all the numerous disaster, accidents, bumps, scrape, thefts and other sometimes unavoidable incidents that can befall your precious vehicle you’d imagine that an insurer would sell you a policy to cover these things. If you’re buying cheap, make sure that you have valid coverage for those eventualities as the U.S based National Association of Insurance Commissioners’ is kind enough to point out that this comprehensive and collision coverage is not a legal requirement for motoring.
Reason 2: Why your deductible could prove costly
How much are you prepared to pay for costs before the rest of the burden is shouldered by the insurance? Go for a higher rate deductible and your premium will be lower, but any payouts of an agreed amount will come from your pocket. If you have one accident you might be happy to pay that deductible, but what if you have more than one? Your insurance is there as a guarantee against eventualities, a higher deductible is only a good thing if you have the ready money to cover any repairs. But have a realistic expectation of what to expect, if you’re accident prone or simply unlucky then perhaps a lower deductible is the smarter move.
Reason 3: Are you a valuable customer?
What sort of customer service are you expecting? You’re unlikely to be treated like royalty if you’re paying the lowest rate premium for a company with a bad reputation. If you want great customer service than look for more than price in your research. Ask around amongst family and peers to see what experiences they’ve had with insurers, a better reputation will generally mean that you can expect better customer service. Even be prepared to look into state insurance records to see if the company you are considering has received more than their expected share of customer complaints.
Reason 4: Who can Drive?
Unless you are very possessive of your car then it’s very likely that every once in a while you might allow friends or family to take it for a spin. If they have an accident are they actually covered? though?
When looking into the small print of the insurance clarify whether it is only yourself that is covered when driving, or if another licensed driver is allowed to drive. With your permission of course! The same also applies if you drive a friend’s car of course. Make sure that you read the small prints of your contract before you find yourself in an uninsured situation.
Reason 5: Don’t be a Scam victim
Sadly enough when bargain hunting or simply to broke to afford much you can very easily be duped by companies that offer exceptional rates, but who are simply out to scam you. It’s happened before that many motorists have been scammed, such as in 2011 when disreputable company Ethos scammed many Detroit drivers.
Before buying from a company make sure that you find out if they have the mandatory state license to sell auto insurance. It’s not a common scam, but you certainly don’t want to be one of the few victims.
Charlene Mattson is an enthusiastic and passionate writer who has been writing over a lot of areas throughout her life including finance, investment, debt, nutrition, health to name a few. Currently she is associated with Autoinsuresavings.com, a place which provides quality auto insurance information and the best car insurance quotes from different companies all in one place.