Like most things, we all want a good deal. But when it comes to car insurance, a good deal doesn’t necessarily mean it is the one with the best price. Cheaper rarely means better and the same holds true for car insurance. Here are a few reasons why
There is a big difference between cheap and affordable. No matter how you look at auto insurance, the cost is always relative to what coverages and services you receive. You can get cheap car insurance but it will offer very little coverage. For a little more money, and still affordable, you can get coverage for the protection you need. Picking the cheapest option can wreak havoc if you need to file a claim. Even worse, it could leave you without a car if your coverage won’t fix the damage from an accident.
That leads to the topic of insufficient coverage. Usually, the cheapest option is going to only provide the minimum limits required by law. If you choose the minimum liability required in your state, you will only be able to pay for the damages to another driver in an accident you cause, and you will not have insurance to cover your own costs.
And that minimal coverage comes with high deductibles. That is the tradeoff for lower premiums. You don’t ever expect to be in an accident, but it is better to assess your budget and come up with a deductible you can afford. That higher deductible might be a saving grace in the event of an accident.
Another outcome of cheaper insurance is poor customer service and claims support. As the saying goes, ‘you get what you pay for’. Check the reviews of each company you are investigating to see how they handle their customers.
Also, be on the lookout for cheap insurance scams. If it seems too good to be true, it probably is. Fake insurance offers are usually deals that you can’t believe how lucky you are to find it. That should be your first sign. The insurance industry is a competitive one, so if you find something that seems substantially less than others, use caution. It is your responsibility to research these companies thoroughly before giving over money or information.
So, now that you know the pitfalls, how do you go about finding the best low-cost insurance for your needs?
You want to be adequately protected should something happen and you want to know you can rely on the company you choose. You need to spend some time investigating options. Car insurance is something you won’t think of often, but you want it there in full force when you need it. Take the time up front to save some heartache later.
Hopefully, your driving record is spotless. The better you are at the responsibility of driving, the more a company is going to ‘reward’ you with better rates. Also, the newer the model of your vehicle, the better your rates will be—safety is the key here.
Be sure to look for discounts such as claim-free, multi-car, paid in full, etc. Get as many of them as you can—they will add up quickly toward your monthly premium savings.
Compare your quotes from several company’s side by side. Ask up front about what coverage options you need and have each company give you a quote for that scenario as well as something else they might suggest. Be sure you are looking at the same options and coverage details when comparing companies in order to get the best results.
Finally, if a company is offering you a promotional rate to switch to them or one that will increase after the first year, take time to understand the consequences to you. Can you afford an increase in your monthly premium after the introductory period? If not, you will be back at the drawing board getting quotes, etc.
Getting car insurance isn’t on anyone’s top 10 list of things to do. But with some due diligence and some common sense, the results will far outweigh the effort.
Let us at California Southwest Insurance Agency help you with a customized quote and explanation of benefits for your car insurance needs. Please visit our website at CSIA or call our offices to discuss how we can best help you. (949) 588-8844 CustomerService@csia-ins.com