No doubt there are expensive and better value car insurance companies in the US and there will always be. It is up to motorists to decide if certain ones would serve them well at current circumstances or not. The subject of this post is when a competitively priced carrier could be a great choice and when you may be happier to pay a few bucks more. It is more about personal state of affairs at this point in time than reliability or pricing.
Everyday motorists get substantially different quotes for the same coverage from varying sources. Mainly the reason is that every underwriter chooses its target market and makes sure they are not beaten at least in that segment. It is only common sense that they will have defined the type of policyholders they are aiming to win over with competitive pricing and other offers. We actually named the cheapest auto insurance companies for certain types of drivers in that post.
One way or another they do specialize and this results in better rates for the matching drivers. Actually, this could be the only reason why one of them offers a more affordable quote to you than other similar level insurers. It may be nothing to do with how good their packages, customer service or claim satisfaction are, as they may proudly declare.
It is fair to say that the amount of money you have can determine what you can buy. However, it isn’t the only factor that affects choices. Here are some of the reasons that can make you more comfortable with more affordable automobile insurers, providing you don’t lose valuable coverage.
- Need to Save Money
When you realize that you don’t have enough to buy all the things you want you start looking into expenses. Besides, you need to put something aside for the future. A little you save today have the potential to amount up to thousands of dollars in the near future, if you invest smartly. You wouldn’t probably like to discover in ten years that all those monies you generously spent on expensive premiums would have been very handy.
- Great Driving Records
If you haven’t had an accident for years you are probably a careful driver. That reduces likelihood of making a claim and need for an ironclad policy. It is all about risk. You are already taking care of certain risks by buying coverage. And most policyholders would get compensated for their losses sooner or later should something happen. For avoidance of confusion, we are not talking about giving it up but finding better value automobile insurance that affords the same protection.
- Living in a Low Risk Area
Living in a safe neighborhood, having a garage and having mild weather may reduce the worries you have. It is in the human nature to buy the best policy you can get when the risks are high and be more relaxed about it when the risks are low.
- Being Claim Shy
Policyholders feel differently about making a claim. A few people would only consider it when they cannot handle the losses on their own while some might want to claim for anything and everything. If you intend to pay small damages out of pocket you might as well save money by setting deductibles higher. Also you might want to look into cheaper car insurance companies that are still sound, instead of the most expensive ones.
- Not Driving Much to Justify the Costs
Many motorists keep cars for convenience even though they prefer public transport for getting to their work and around. When you are not driving much you are less likely to have an accident. Then, you may be justified for wanting to spend less. Otherwise, you may end up paying too much for that convenience and feel like it is a burden to own an automobile.
- Can’t Spare Money for Over-Protection
It is nice to have a policy that takes every risk into account but you will be paying much more for it. For example, would you need Rental Reimbursement if you can manage without an alternative car should something happens to it? You should think about every item and decide if you need it. Next step is to check if you can economize by dropping coverage and if it is worth the drop. More affordable ones tend to prepare economical full coverage automobile insurance while expensive ones come up with fully loaded and therefore pricey policies.
- Your Loyalty May Not Be Paying
One of the reasons why people stick with their carriers even though they are more expensive is that they believe their loyalty will pay off when they have a claim. There is no evidence to suggest that long-established customers are treated any differently. In most cases they wouldn’t even look at how long you have been with them. Furthermore, new customers may be getting the most advanced and economical policies while older customers are still kept in higher rates with no improvements to theirs.
- Privilege Isn’t Worth Paying for
Having an established brand name is a valuable asset and some companies bank on their good name to charge more. Some of them act like it is a privilege to be with them. You should check how much this privilege costs you and if it is really worth paying extra. You should give cheaper vehicle insurance carriers a chance to quote and see. There is a high possibility that one of them will impress you enough.
- In Charge of Own Finances and Able to Compare
Information is available freely online and easy to get informed about any subject these days. Also people are keener to look into their options in details lately. There are so many discounts to take advantage of. For example bundling home and car may save a little. When you look deeper you are likely to find a better solution that saves money.
- Why Not If You Are Not Loosing Out.
Why should you pay more if you can get the same thing from more competitive source? Remember that a policy is only better value if it is offering the same. So, you should always get quotes on that basis and make a like for like comparison.