What to Check When You Find Cheap Auto Insurance Policies

It would be great if you can find a cheaper price for exactly the same item. Then, you can truly say that you are getting a better deal. However, it is not always as simple and straightforward because similar products are offered by different manufacturers and suppliers. Price isn’t everything when you are buying goods and services. You need to balance the quality of the product, customer service and brand reliability with low prices. This is no different when you are buying automobile insurance.

You can lower your premium, still have great coverage and be insured by one of the top insurers. However, you need to proceed with caution in the process and find out what is on offer before rushing into it. There are ways to make sure that you get either similar or better coverage when you find a lower quote for your policies. We will discuss below what you need to check to make sure you get all aspects of buying a policy right.

Are You Getting Good Coverage?

When you find cheap auto insurance policies one of the first thing you need to check is to make sure you are not losing out on coverage. First thing you need to check is to see if you are getting similar levels of liabilities covers for injuries and damages you may cause to third parties. The next step is to check if you are getting all the other covers you asked for like collision, comprehensive, uninsured motorist and rental reimbursement coverage.

That is why it is important to compare quotes side by side to make sure you are at least getting what you want. Also, you should check the exclusions and special conditions of any policies you are considering purchasing. Sometimes the devil may be in the details. It may be a good idea to run it by with the company and ask if there is anything else you need to know.

Actually, you are advised to provide exactly the same details and ask for a quote based on the same level of coverage when you are shopping around. This will make it easier to compare them at a later stage. You may want to get your old policy out and use the same information. If you want to make changes to your policy remember to get another quote from your current insurer as well.

Do You Have the Same or Lower Deductibles?

Deductibles can be used as a leverage to bring down your costs. This is the amount you need to pay out of your pocket for each and every claim before your insurer settles the rest of the damages. Some cheaper polies may come with higher deductibles that raise questions about their real value. If you go back to other companies and ask them to give you quotes based on higher deductibles they may be able to offer you the same or cheaper prices.

In a recent survey, forty percent of motorists indicated that deductibles are very important factors in their decisions. This can be even more important when you don’t have good driving records. If you have one or more accidents and your deductibles are higher you may end up spending more than the savings you got because deductibles were kept high.

What Level of Customer Service Do You Get?

Some companies can offer you the cheapest car insurance rates but they may expect you to buy and manage your policy online. This may not be a problem for many people and some people may actually like it more. You can make changes to your policy, renew it or submit a claim when you have an online account.

On the contrary, some motorists would take extra comfort from the knowledge that their insurers have local agents. They may like the idea that they can drop into agents’ offices and talk to someone face to face. 24 telephone helpline can be another facility you value. In that case, you may want to go with a company that can offer all these services even though they may be slightly more expensive.

Is Everyone Who May Drive Your Car Covered?

One other way of offering great insurance quotes is to limit who could drive the insured automobiles. Policies with lower premiums may only cover the listed drivers and specifically exclude others. If there is no chance of someone else driving your car this may not be a problem and you may enjoy the savings.

However, you may be a nice guy/gal and happy to hand over your keys to anyone who asks. In that case, you have to make sure that your friends and any occasional drivers are insured in your policy. This may cost you a little bit more but you will have a peace of mind. Most standard policies should insure occasional drivers. However, it is best that you check this is the case.

Make Sure You Are Buying from a Reputable Source

Every company that issues or sells policies has to be licensed by your state and display their license number in their premises, websites and other business documents. Every now and then we hear stories about crooks opening shops, collecting premiums and disappearing. You need to check that you buy your policies from an official website, licensed broker or reliable phone line.

You should particularly be careful with cold callers. They may be legitimate and you can easily find out. One way of checking is to get their phone number, search it online to make sure it belongs to the company and call them back if you are interested. You can get their license number and check with state insurance department if you suspect any foul play. Good luck.


  1. says

    All great tips when looking to change providers. I know when I was looking a few years ago, I found a lower cost insurer. It turned out they were offering me a worse policy (lower coverages). I kept searching and found one I thought looked good. The coverages matched what I currently had so I went online to read customer reviews. In the end, I made the switch.

    One thing I would point out is when reading reviews, realize that you will never find 100% of the people happy. Someone will always have an issue. You just have to understand how to look at reviews constructively to see if the company is good or not.

  2. says

    We have a pretty good insurance company and when we were looking to reduce our bills, we kept our company, but changed our policy to save money. That included raising our deductible to what we felt comfortable with and getting rid of a few “extras” that we really didn’t need. A better company is much more important than rock-bottom pricing.

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