Why the Cheapest Auto Insurance Isn’t Always the Best

By: David Schneider, Car Insurance Expert
CheaperCarInsurance.com

If you’re looking for the cheapest auto insurance online, congratulations; you’ve come to the right place. But before you start cutting corners and coverage on your policy, you need to know that getting the absolute lowest price and coverage isn’t always the smartest thing to do. Here’s why.

You Put Yourself at Risk

Sure, it’s tempting to get the minimum coverage required by your state for liability and collision coverage, but what if you get in an accident and have to pay out of pocket? Having $5,000 in personal liability coverage won’t do much if the other driver has $10,000 or even $20,000 in medical bills. You will be responsible for anything over that $5,000 amount. Can you afford that?

Likewise, if your car is damaged, and you’ve chosen the highest deductible to save cash, you then have to scramble to find $1500 to cover your deductible before your insurance company pays for its part of the repairs. Your repairs might not even cost $1500, which means that your collision coverage did absolutely nothing to help you get your car fixed.

Being cheap and getting the most basic, cheapest auto insurance can cost you more down the road.

You Cause Yourself a Headache Later

Auto insurance companies offer services like rental car reimbursement and roadside assistance because drivers often need these services. By having them built in to your car insurance policy, you make it extremely easy to get tow service if your car is stranded or rent a car if yours is in the shop. If you cut these options, you have to go through the pain of finding these on your own and paying out of pocket.

For a surprisingly low amount, usually just a few dollars or cents a month, you can get coverage that will provide you peace of mind in a time of crisis.

You May Be Paying on a Wrecked Car for Years

If your new car is totaled and you don’t have Gap insurance because you bought the cheapest car insurance possible, you will still be responsible for paying off your auto loan for the remainder of the period you owe. Purchasing Gap insurance will instantly pay off whatever amount you owe, freeing you up to take out a new loan on a new car.

Gap insurance can be a life saver if you wreck your car.

Some Car Insurance Companies Aren’t Reliable

If you go off the grid of the best known auto insurance companies to buy the absolute cheapest car insurance available, you may be disappointed to find that the service is horrible and filing a claim is a gigantic headache. You essentially pay for better customer service with reputable companies, and cut it out when you want the cheapest car insurance around. It’s up to you, but a reliable car insurance company makes having car insurance much more pleasant.

Let’s Review

Certainly it’s fine to want to get cheap car insurance. And at CheaperCarInsurance.com we’ve negotiated great rates from well-known and respected insurance companies. But cutting down on coverage to get the cheapest car insurance is just not advised. But getting better coverage you can:

• Save on deductible payments down the road
• Not have to pay for liability expenses out of pocket
• Have your car paid off if it’s totaled
• Get top quality customer service from a reliable company

You’ll still find deep discounts on car insurance on our site, but you won’t sacrifice quality or coverage if you buy a policy from one of our insurance partners. Get a quote now to see how much you can save!

Posted: January 19, 2010