Probably the definition of good cheap car insurance would be that it should be cheap in comparison with the rest of the quotes for the same standard coverage and it should be provided by a good auto insurance company. This article examines how you could make sure you have good cheap auto insurance, rather than hoping and falsely believing that you have.
Some companies sell full coverage car insurance policies that are cheaper than liability only cover from other companies. They are legitimate and mainly down to competitiveness of the carrier, additional discounts and special offers. In other words, motorists can really have great policy packages from a good cheap auto insurance companies.
However, it is best to put it through some tests to confirm this is the case. It is worth having a close look at your policy and premium to ensure you will not face surprises when you have a claim and you don’t kid yourself with false beliefs.
Why Do You Think You Have Good Cheap Auto Insurance?
Sometimes, motorists may not have a real reason to be comfortable with their current insurers. They may have no clue how competitive their insurers are. And they may not know how good they are in paying claims since they have never had a claim or needed to contact providers. The real reason may be that they are dreading to look into their policy details, call a few companies to get prices and arrange the switch. So, it would be easier to believe that they have great coverage, cheap prices and good car insurance companies.
Are You Convinced You Have Good Cheap Car Insurance?
You may actually be paying pretty low premium compared to your friends and colleagues. Should you just be happy and forget about it. This would be easier to do if you already have auto renewal in place. Your insurer will take the money out of your account or credit card and just carry on as it is until you say something. You are as happy as Larry, you think? Your policy may even be called fully comprehensive to make you even happier. So, what could be a problem?
What May Be Missing on Good Cheap Auto Insurance Coverage?
It may be no surprise to you to hear that each policy would have its own cover provisions, terms and conditions. These are the points you need to have a close look to see how good a deal you are getting. As you understand, you cannot compare a flimsy cover with a decent one. And most importantly, your policy should provide enough coverage for your needs. Here are the steps to check if you have really cheap auto insurance.
First of all, you should have all the coverage you need. If the policy you have offers lower coverage as compared to a typical policy in the market that is probably why the premium is lower as well. For example, you may have liabilities, collision and comprehensive coverage like everyone else. Nonetheless, your liability coverage may be the state minimum car insurance cover. You may think that it is great since you are totally legal.
However, you may not have the same enthusiasm to learn that most policy packages offer over ten times more liabilities coverage, definitely not the basic cover. Anything less could put you in serious trouble in today’s world where there are a few cars on the roads with prices over hundreds of thousands of dollars. In addition, hospital costs for injured third parties can quickly reach at hundreds of thousands of dollars as well. People don’t buy liabilities coverage to comply with the state laws. They buy because they want to be protected against liabilities claims. So, first thing to look at is how much liabilities coverage you have.
There are a few other coverage options and provisions but nothing as important as liabilities. Your car will be insured at its open market value as usual. All you need to do is to check that you are not underinsured and the amount listed is right.
Next, you should make sure that you have whatever else you need. For example, you may be going abroad often with your car and you may want to make sure that your car is insured in those trips as well. Some policies may exclude travels abroad, offer limited coverage or set a time limit.
Furthermore, many people make the mistake of thinking that full coverage will include courtesy car provision should yours be taken in for insurance related repairs. This is not something that may bankrupt you but it is something worth checking.
Good policies from good auto insurance companies come with many extra covers as standard. And cheaper ones may exclude a few of those covers. When you start adding them back on the new quote may come higher than the good packages that seemed expensive in the first place. What is important to ensure is that your policy doesn’t exclude the covers you need.
You should check if your policy comes with certain exclusions that may be burdensome or unpractical for you. Certain driver exclusions can make a policy cheaper. You just want to make sure that is not the reason why you are paying less. If it is, other companies would offer similar discounts as well that will make alternatives cheaper.
Quite a few companies may exclude occasional drivers under the age of 25. This would mean that you cannot hand over the car keys to a teenager who is not listed on your policy. This would most likely be the case if you have a powerful sports car and it may cost you a few bucks extra to remove this condition. However, some companies are known to exclude all occasional drivers and only insure listed drivers. This would reduce the risks substantially for the insurer since they know everybody who is allowed to drive. It shouldn’t be a surprise if you are getting good car insurance rates in return.
Mileage limitation is another point to check. You may have agreed a low mileage deal a few years back. You have to make sure that it is not a condition of the policy anymore if you are driving a lot more now. Also, you should check if you have any coverage for driving other cars. Normally a standard policy should have liabilities coverage for driving someone else’s automobile.
It is possible to achieve good auto insurance rates by choosing higher deductibles. You should have a look at your deductibles and what the other companies are offering. If your deductibles are $1,000 and another company is quoting to insure you with $200 deductibles it is normal that your policy should be cheaper.
You should also keep in mind that some companies may have varying levels of deductibles depending on the age and experience of the listed drivers. They may have increased deductibles for young, foreign and high risk drivers. You should check which deductibles apply to you and other listed drivers.
- Special Conditions
Certain special conditions can allow you substantial savings. For example, it may be the condition of your policy that you park the car in your garage most of the time. The discounts will be higher if you live in a rough neighborhood or have an expensive car. You just have to make sure that you still meet these conditions and you haven’t already turned the garage into a study.
- Extra Charges
Some companies may have an extensive list of additional charges. That is probably how they intend to close the premium gap with their competitors. The problem is that most companies are not forthcoming with these charges and policyholders don’t ask the schedule. It could be as ridiculous as charging for every change you make to your policy.
Policyholders would expect to pay additional premiums if there is a serious change on their particulars like changing the car or moving to a different zip code. But they shouldn’t normally pay additional fees for making the change. You should check if there are fees to make amendments to your policy and check the cancelation fees while you are at it. Good car insurance companies don’t look for silly excuses to charge more each time a policyholder calls them.
As you can see there are a few points to check. But it is not hard to compare your policy with alternatives for price and coverage. There is no doubt you can find good cheap car insurance companies. However, there are a few policyholders who were tempted with low prices and ended up with less than desirable coverage. That is why it is worth checking your policy properly and knowing exactly what you are buying into.