Auto Insurance NewsVery Cheap Auto Insurance
You’ve probably seen advertisements on TV and heard pitches on the radio to switch to very cheap auto insurance. “Save hundreds of dollars by switching to us!” they claim. Some of the claims sound more believable than others.
While many of the cheap insurance companies actually provide a good deal, some of the cheap insurance companies offer terrible service and the kind of insurance you don’t want to have if you ever get in an accident.
Here’s what you need to know about cheap auto insurance to make sure you don’t get hosed when you need help the most.
Benefits of Very Cheap Auto Insurance
Though there are some drawbacks to low cost auto insurance, people wouldn’t keep choosing it if there weren’t some serious benefits. Many of the top firms (according to customer rating) offer affordable auto insurance and special online rates, allowing you to save while getting quality coverage. Here are some of the reasons why choosing discount car insurance is a good idea:
It’s Easy.
It’s never been easier to shop around and compare insurance rates. You can go online and get an insurance quote in just minutes with several different companies including Progressive, Geico, 21st Century, and more. You simply visit a website, put in essential information (your age, what kind of car you drive, your driving record, etc.) and then you’ll receive an insurance quote. While this won’t usually be the final price you pay for your insurance (although it could be), it will at least make it simple to compare rates for insurance.
You’ll Save Money.
Buying insurance today usually means spending an arm and a leg, especially if you have to pay insurance for a newer car or if you have a spotty driving record. Insurance isn’t cheap if you are a good driver, either. The fact is, everyone needs insurance, and so why not pay less for something you’re forced to have? It only makes sense.
Long Term Savings
Finally, because you’ll save money in the short term, you can start putting your money away for long-term savings. Instead of paying $100 for insurance every month, you could be paying $40, saving you $60 per month to put away for a rainy day (or at least use on something fun).
Drawbacks of Cheap Auto Insurance
Even though you’ll save money, there are some drawbacks to buying discount car insurance. The low cost can sometimes mean less coverage. Here are some things to consider.
Reduced Coverage
While no one plans to be in an accident, things happen to everyone. Most of the time, lower insurance rates mean increased personal liability when accidents happen. This means you’ll have to pay more out of pocket if you rear end someone or if they rear end you. This also means you probably won’t have your hospital bills covered either. You may not think these matter now, but when an accident happens, you might wish you’d gotten better coverage.
Difficult Customer Service
While this is not universal, cheap insurance companies have a reputation for bad customer service. This may make it difficult when trying to get an accident covered or deal with an insurance claim.
Since accidents are stressful situations already, you should check the customer service reviews of the companies you are considering purchasing your insurance from to make sure you’ll get the help you need when you need it.
Other people may have different downsides to auto insurance companies, so make sure you spend some time online and look at company reviews to make sure you know the pros and cons of each individual company in addition to cheap insurance.
How to Find Cheap Auto Insurance
With some of the pros and cons of cheap auto insurance spelled out, here’s how to go and get auto insurance for yourself.
- First, you’ll want to gather any necessary paperwork you might need when applying for car insurance. This includes a copy of your driving record (you can usually get a free copy online from your state’s DMV website), your vehicle’s VIN and license plate numbers, the details of the financial status of your car (whether you own it or it’s on loan and how much you owe, etc.) and more. You should also get a copy of your current insurance policy.
- Once you’ve gathered this information, you should start looking online and comparing insurance rates for cheap insurance companies. Many sites allow you to use their tools to compare right on the site. You should make sure to include identical policy information on each site you compare with in order to get an accurate quote.
- After comparing online car insurance rates on several different sites, write down the top 3 choices for the lowest auto insurance rate.
- Next, perform an internet search looking for reviews of the companies you have chosen. While a company may have a great rate, it may also have a terrible reputation among its customers. Spend time researching instead of jumping to a decision so you won’t have any regrets later.
- Finally, sign up! Call the insurance company or use their online form to try and get special online rates for insurance. If you want, you can call the company to ask the customer service rep if there any specials which may not have been advertised online. Don’t be afraid to ask for good driver discounts or other rate reductions based on your good driving history. You’d be surprised what you can get just by asking.
When looking around for cheap auto insurance quotes online, remember to keep these tips and steps in mind. Insurance may not seem like a big deal, but when you are in an accident or need to file an insurance claim, the company you go with makes a huge difference.
It may be better in the long run to pay a few dollars more per month than to find out the hard way you wish you’d purchased better vehicle insurance people love. Take your time to research the companies you’re considering, and feel free to ask your friends and coworkers what they have to say about their insurance providers.