Cheap Auto Insurance: The Hazards of Choosing Cheap Car Insurance

Dangers of cheap auto insurance: pitfalls of choosing a cheap car insurance provider.

If you own a car, truck or other motor vehicle, most states require you to purchase Auto Liability insurance, which can protect you and your passengers in the event of a covered loss.

Auto insurance rates are based on many factors and quotes can vary widely. Among the factors that insurance companies often consider when setting rates are age, gender, driving history, and the year, make and model of the vehicle. Additionally, in some states insurers can consider credit histories when providing rate quotes.

If your car is financed, your lender will likely require you carry some form of Comprehensive insurance (sometimes known as “Other than Collision Coverage”). This type of insurance protects you against damage caused by things other than a vehicle collision such as fire, hail, flood, vandalism or theft. Collision insurance is coverage that applies to your vehicle if it is damaged as a result of colliding with another object—another vehicle, for example, or a tree.

Here are some tips to consider while shopping for a quality provider and affordable rates:

  • Check with an Independent Insurance Agent. They can provide you with more than just one quote from several companies. And the best part is they work for you, not the insurance company.
  • Maintain a clean record: A good driving history is your best defense towards obtaining and maintaining affordable insurance. Obey traffic laws, keep a light foot on the accelerator, and—if you choose an insurer that uses credit scoring in their evaluations—pay your bills on time.
  • Bundle your insurance: Many insurance companies sell other types of insurance, such as homeowners, renters or condo insurance, or mechanical breakdown protection. Consolidating your insurance policies with a single provider can create a substantial discount on your premiums.
  • Drive an economical car: Insurance rates are partially based on the type of car you drive. If your vehicle has low safety ratings, a high theft rate or a high incidence of vandalism, you may pay a higher premium.
  • Don’t give inaccurate answers or try to mislead. Most of the time consumers “think” they know the correct answers in order to keep prices low. In most cases they are costing themselves money instead of saving and it will likely lead to an      uncovered claim if you lie about anything on an application. Be honest and your agent will have your back. If you choose to buy coverage directly from a website or 800 phone number, you have no agent to assist you.
  • Listen to your agent. If you don’t know the difference between Bodily injury and Personal Injury, how do you know how      much coverage to buy? Your agent is there to help you make an informed decision about proper and adequate insurance protection. If you don’t understand what they are saying, ask for clarification. If you don’t purchase what they suggest you cannot blame them for not having enough coverage when you have a claim.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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