When shopping around for auto insurance, you might want to do a little research, and try not to listen to snappy television commercials and cartoon mascots. The budget insurance companies that inundate the airwaves may guarantee lower prices, but their coverage might not be as inclusive as the traditional companies.
Budget insurance companies offer basic coverage, and serve the needs many frugal consumers. However, making insurance claims may be more difficult than you expect. There is a reason that certain companies can offer low-ball rates: they typically make up for it with lack of coverage. Filing claims with them can be exhausting marathons filled with red-tape. While every insurance company has its troubles, those that pitch you a price far below industry standards, will likely have lower standards of their own.
Its best to shop around among companies and not always go for the cheapest rate. Several factors should be included in your decision making:
- Examine the various deductibles and how they affect your premium. Many companies will have very low premiums, but their deductibles may be unrealistic for your budget. Choose a deductible that will fit with your finances.
- Research the company history and any consumer complaints. There are several resources available to check the customer service records of the various insurance companies. While all companies will have complaints, beware of those with excessive, or repeated complaints.
- Uncover all discounts that you may be eligible. Larger companies tend to offer more discounts than smaller, and each year there are new discounts to be discovered.
- If you are a driver with a not-so-clean record, you may want to find out the companies “forgiveness period” which is the time (typically years) that it takes for violations and other accidents to be wiped from your record and lower your premium.
So, when shopping around for car insurance, it is best not to skimp. Two old adages ring very true: “You get what you pay for”, and “If it sounds too good to be true, it probably is”.
