10 Ways to Assess a Dirt Cheap Auto Insurance Quote

Many a time motorists get extremely lucky and find genuine dirt cheap auto insurance quotes. Perhaps an insurer gets too eager for new customers and blows the competition out of the water. However, there may be a mistake somewhere that results in an inaccurate quote. There may also be causes for suspicion as to why you are quoted dirt cheap car insurance.

You wouldn’t think twice to drop an expensive quote but it isn’t easy to give up on a huge saving. When you see a quote way below the rest of the quotes you do a few things to confirm that it is an acceptable quote.

  1. Get Some More Quotes

Sometimes, you may have the impression that you got a dirt cheap automobile insurance quote when the cheap quote comes after couple of really high quotes. You should get a few more quotes and see where they end up. You may feel that you have a fair quote if one or two more insurers offer you quotes close enough to the cheap one. You may realize later that the cheap quote isn’t as cheap but expensive quotes are too expensive.

  1. Re-check the Quote

First thing to do is to make sure that you haven’t made any mistake when you are filling out the quote form. You can fill out the quote form attentively online and get another quote to confirm you did everything right. Alternatively, you can call the insurer and let them give you a quote on the phone.

  1. Check the Coverage

If the second quote matches the first one you can check the coverage. Some insurers manage to offer cheap full coverage by keeping their policy basic. For example, most insurers offer more than basic liability coverage with their policies and they come with extras on top of Collision and Comprehensive coverage. If the coverage appears to be basic that explains the surprisingly low auto insurance quote.

  1. Check the Conditions Attached

Another way of managing to beat the competition and offering dirt cheap vehicle insurance is limiting the policy with conditions. For example, the coverage in question may be only for the listed drivers and there is no occasional driver provision or there is an age limit to occasional drivers like over the age of 25.

  1. Check the Deductible

Reducing the chance of small claims with higher deductibles is a good way of managing costs so that the insurer can bring the price down. If this is how an insurer can offer really competitive auto insurance it may be acceptable to many motorists. It is a perfect example of give and take to get cheap rates. You accept that you cannot claim for most small losses or you pay high deductible if you do. And the insurer agrees to cut your rates.

  1. Check the Insurer

If everything is fine so far you should start checking the insurer. If the quote is from a well-known insurer it will be easier for the customer to accept it. But you need to do a little bit of research if you know nothing about the insurer. In addition, you should make sure that the quote is genuine. Some fraudulent agents are so good at pretending to be representing a reputable insurer.

  1. Check the Agent

The next thing you need to be careful is the agent or broker if you didn’t get the quote direct. The actual insurer may know nothing about it when an intermediary commits insurance frauds.

Always check if the insurer or the intermediary (agent) is licensed by your state to sell insurance. Both insurers and insurance intermediaries have to be licensed by your state authorities and display their license number on their websites, offices and headed papers.

Also, you should be extra careful when you come across unusual demands like cash payment. You should always use common sense no matter how much is your quote. For example, you should be receiving your proof of insurance and policy documents in timely manner. If they are not coming you should follow it up.

  1. Check the Contact Details

One way of making sure that you are looking at a genuine quote is to get it confirmed by calling the insurer. They will be able to either verify the quote or verify the agent. Alternatively you can even get a direct quote from them. Sometimes, there may be slight differences on the quotes depending on the source. But the difference shouldn’t be much.

  1. Decide What to Do

Everything may look or sound fine. But you can still walk away from it if you don’t feel comfortable. That is the beauty of customer power. Teenagers may grab such aggressively-priced car insurance offers with both hands especially if they buy liability only coverage for an older car and they have no assets to protect. But it wouldn’t be easy to accept an extremely cheap quote when you have a nice car and you have properties to protect against liability claims. And financially you may not feel desperate for a budget car insurance anyway.

  1. Be Aware of Renewal Price Bumps

Some insurers may offer really low introductory rates to hook you on. Then, they start pushing the rates up starting from the next renewal. Insurance companies apply this strategy because most policyholders get comfortable with their insurers and aren’t keen on switching. You can always check with the insurer if the rates they offer include any temporary introductory discount. In any case, watch out for premium increase at renewal after accepting a dirt-cheap auto insurance quote and be prepared to switch if you need.

We may desperately need a very reasonable car insurance quote at times. Considering around 14% of the US motorists ride their luck everyday with no insurance, nobody can blame anybody for looking for the bargain basement deals. Trying to find the cheapest auto insurance companies doesn’t make you susceptible to a bad policy, insurer or fraudulent agent. There are many good insurers with really low rates and you would be making a mistake if you don’t try to find them. Also, a smart fraudster would rather use the name of a top insurer and try to get as much money as possible from you.

Probably, you have already realized that you should follow the above steps in any case to make sure you are actually insured. It would be too late to find it out when you have a claim.

Share on Pinterest
There are no images.