Finding a good balance between the cost and reliability of your car insurance company is the key to full satisfaction. There are many policies and providers that are reliable and economical enough. However, there is a scaremongering going on in the market. Most companies and their agents would prefer to scare their policyholders off cheaper packages instead of competing with them. So, how to find cheap auto insurance without compromising on coverage or quality of your carrier?
Most motorists are capable of separating a cheap and good policy from useless but cheap policy. You probably know that it isn’t easy to make money and you would want to save whenever you can. Luckily, there is an efficient market in the USA that can make it easier to find some savings. In each state there are hundreds of companies competing for business.
Furthermore, consumer advocates and experts would tell you that you should shop around before rushing into buying vehicle insurance coverage. What is the chance of the first company you apply for a quote to be very competitive?
Are Auto Insurance Companies in the USA Reliable?
Most companies are licensed in multiple states. This means that they pass scrutiny from each state they are allowed to sell policies. Many of them are about hundred years old businesses with substantial funds and expertise. Also, there is a mechanism of re-insurance in which insurers insure themselves against unexpected large losses. Should they suffer a large and sudden loss that they could not foresee they get help from re-insurance companies.
Furthermore, each state charges a premium to companies they license within their borders. These funds are accumulated in a pool known as insurance safety nets. Each state would do its best to compensate policyholders from this funds should one of the companies fail. They try to pay all the claims and return unused portion of the premiums back to policyholders.
Of course you never know what happens and you should do your best to make sure they are financially safe before insuring your automobile. There are companies that rate financial viability of insurers. Also, there are companies that report on customer satisfaction among auto insurers. You can find top 5 car insurance companies in all states in that post. You can also find top 10 auto insurance companies for claims in another post on this site. State insurance departments publish complaint details on each insurer as well.
How to Find Cheap And Reliable Auto Insurers?
First of all, you do not have to accept any quote you have been given if you are not fully satisfied with the provider. You are at the driving seat when it comes to making the final decision. So, you should not hesitate to look under the hood and see which companies offer cheap automobile insurance rates for you.
Premiums can be considerably different not only between companies but between a company and its subsidiary. For example Esurance is backed by Allstate and mainly operate as online provider. If you get a quote from those two companies for exactly the same drivers, car and coverage you are likely to get different quotes.
When this is the case we can conclude that there are other factors determining premiums, not only the security offered by the company. Some of these factors are the type of risk companies are willing to accept, their wish to be competitive or conservative and their current risk portfolio. When a company is happy with their current position they are not willing to lose profit margins so that they can win over few more new customers. Here are 5 few tips on how to find satisfactory coverage.
1. Always Shop around for Economical Car Insurance
You know shopping around for the best deals is easy online and works. You can get exactly the same product from different suppliers at much cheaper prices. The same principle applies to vehicle insurance as well. Don’t buy any policy without getting a few quotes and comparing them for coverage and price. Just take two of the top 5 insurers to start with and see how much the premiums can be different from each other even though each of these companies is as good as the other.
2. Maximize Discounts and Minimize Surcharges
Essentially finding affordable auto insurance is about finding all the discounts you can qualify for. Quote forms will help you on this by asking the relevant questions. Just check our homepage to see how each answer may qualify you for another discount or lead to surcharges.
3. Look at Different Combinations and Alternatives
There are so many different ways of insuring cars and you can find the best way for you by trying different combinations and seeing the premium for each of them. For example, you can try to insure all the vehicle in your household with one insurer and see if they would offer a good discounts for multiple policies. You can also see if they would offer you multiple line discount if you insure your home with them. You can increase deductible to see how much it will make a difference. There are a few more of them you can try and test before settling for the best cheap car insurance coverage option.
4. Don’t Be too Trusting with Insurers or Agents
Most policyholders assume that their insurers will always check and offer the best rates at each renewal. But this is proven not to be the case many times. Insurers are known to have a way of penalizing trusting policyholders who don’t shop. In the same way, don’t let your agent get too comfortable with you. As soon as they realize that you aren’t going to leave they feel they don’t need to work hard to keep your business. In fact, they can even try to make a little bit more money from it. Now you can get a few quotes of your own online just like any broker or agent. Use this to your advantage.
5. Find Answers before Buying Auto Insurance
Only when you find all the answers you have in your mind you can arrange the best policy. Ask yourself how much insurance do I need for my car, check that post and try to answer all the questions in there to arrive at a great coverage to meet all your needs. Then, start shopping for the best price for it.
It really involves complicated calculations and it can be hard to understand. The bottom line is that you can get inexpensive coverage offered by a decent insurer for the same coverage you currently have. The best way to find out is to have a go and get a few quotes.