It is great to get the cheapest auto insurance quote you can get. But there must be a limit as to how low they can really go? Could some cheap car insurance quotes be too good to be true?
Most of the time motorists would be able to get cheaper auto insurance quotes thanks to competition in the market. It is no surprise at all if you find a cheaper quote with much better coverage than what you currently have and from at least similarly reputable firm. Keep this in mind at your next renewal and give other insurers a try by getting alternative quotes.
Many agents and companies like to put a negative spin on new and more affordable quotations. They try to undermine your confidence in your new coverage and insurer by asking questions like “do you get the same coverage”, “is the insurance company as good as ours”. This can play in minds’ of many policyholders and they end up staying where they are and paying more.
Differences in coverage, policy conditions and deductibles are expected in such a large marketplace. That is why you need to get several of them and compare properly. These differences may be acceptable given the savings you will receive in return. The key here is to understand what you are trading for a better deal and be OK with it.
Some common areas to look are;
First of all deductibles may be higher with a cheaper premium. If it works for you, there is no problem with it. It is not a defect or a serious shortcoming as long as you know that you will be required to pay more out of pocket if you have accidents. Actually, many good drivers prefer to increase deductibles and get lower premiums in return.
Secondly, policy conditions may be different. For example, you may be restricted to whom you may borrow your automobile. A common one is that some companies restrict drivers to anyone over the age of 25. This may actually pay off handsomely in terms of savings. You need to think who could possibly drive your vehicle and see if this condition acceptable to you.
Thirdly, coverage may be slightly different. Normally, alternative prices you get should include at least the coverage you have at the moment. However, some cheaper policies may exclude certain coverage or more expensive coverage may include a bit more. You need to think what you are giving up and you can live with it. Also, is the savings worth the compromise. For example, a cheaper full coverage policy may not include Rental Reimbursement Cover. You may not have any problems with it if you have alternative transport available in cases of your car not being available due to insured losses.
These are some of the scenarios you may come up. You shouldn’t be discouraged from looking for the best value for yourself. If you don’t like what you see you don’t have to accept any quote. It is worth stressing again that you may find a policy and insurer better than what you have got and at a lot cheaper price.
Policies can be expensive for many different reasons other than offering great coverage or coming from a top insurer. And a cheap policy can be as good as any if you take the time to carefully select it.