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Are you looking for a carrier that offers car insurance for people on a budget? If you answered yes, it is time to start comparison shopping so that you are able to find really cheap car insurance.
Comparison shopping is crucial when you want to find a value-priced plan, but there are other factors that are just as important as premiums.
Focusing strictly on the cost of an insurance policy can land you in hot water if you need to file a claim that will not be covered.
Before you ask yourself where you should start shopping, you should be asking what considerations should be made that do not involve price.
You could always select a policy with state minimum coverage, but how does that decision to save just a few dollars leave you vulnerable when you or your loved ones hit the road? It is possible to find cheap insurance that offers you protection for both your assets and your passengers.
Be sure to use our FREE tool above to start comparing car insurance quotes.
Here are some very valuable tips all consumers could find useful when they are in search of really cheap car insurance quotes:
Why Not All Really Cheap Car Insurance Policies Are Good Policies
Car insurance is a state-mandated requirement, but it is also a product that you should not be without when you own a car.
If you choose to buy a bargain-basement plan without checking into quality, you may be left with low rates for a policy that really does not provide you any protection.
Low rates in exchange for low coverage options may be great for very limited budgets, but there are better ways to save money.
Most people know that a bare bones policy does not provide much coverage to pay or medical bills and for property damage repairs, but did you know that choosing the lowest rates without doing homework could actually land you in the hands of an insurer that will not be there when you need them the most?
Really cheap car insurance may not always be sufficient, but even those really cheap plans that offer higher limits of liability are only as good as the insurer that is extending the protection.
Why an Insurance Carrier’s Reputation is So Important
Choosing an insurance company can be a challenge when you are putting the company’s reputation above pricing. With so many different insurance companies to choose from, it is only to be expected that some of the insurers are subpar compared to the leaders in the marketplace.
If you do business with a subpar retailer, you just do not buy from the store again.
If you do business with a subpar insurer, it could be the difference between a paid claim for thousands of dollars and a denied claim.
What happens when insurers price rates too low?
All companies set their own rates but insurance companies need to charge the right rates if they want to stay in business. The company must do their homework, develop a rate filing, and come up with researched claims projections so that they know how much they can expect to pay out each year.
If the carrier does not use risk factors effectively when developing a rating filing, it is very likely that they will not collect enough money to pay for the projected claims. This eats into the company’s reserve money and ultimately will eat away at their profits.
It may seem like a good thing when an insurance company is offering you rates that are as much as 50 percent lower than the rates charged by their competitor. If it is a big name insurer that is obviously financially stable and has established their brand in the marketplace, you might not have to worry as much about a low rate quote.
If, however, the company is small or new in the industry, you need to check and be sure that the company is strong financially and stable.
Failing to check the financial strength of an insurer is dangerous because you are at-risk of choosing a company that is on the verge of going out of business. Simply put, companies that do not collect enough money for standard and high-risk drivers will eventually go bankrupt.
A bankrupt company is a company that will not pay claims, and this is the entire reason you are paying premiums to the provider in the first place. This is why it can be damaging to you as a consumer to choose a company that prices their rates too low.
How can you check the financial health of a company?
If you are like the many who have no clue how to check a company’s financial health, you have come to the right place to learn just what you can do.
All the financial statements of insurance companies are public record. This is to protect the consumers who do business with them.
The problem is that many consumers have no clue what to look for when reviewing a financial statement.
This is why there are consumer rating agencies in the financial sector that review the statements and write reports that can easily be understood.
You can check any insurer’s financial rating through agencies like A.M. Best and Moody’s by typing their name into the search tool.
Make sure you know the rating scale by reviewing the letter grade legend and you can cross that iffy companies off of list before you even check their prices.
What are other factors to consider before you find cheap insurance?
Financial status and health is important, but there is more to a company than just having the money to pay claims. If you never file a claim, you want to know that you are patronizing a company that will give you excellent service.
You should always check customer satisfaction rankings and complaint records to find out if there are some trends that could be red flags.
Find out how you can contact the insurer, if the company provides great service, and how the claims process works. You should also check to see if you must get repairs with a specific shop, what types of parts can be used, and what the maximum per hour the company pays for repairs.
Best Channels to Find Cheap Car Insurance Rates
Now that you know what you need to consider before you even look into pricing, it is time to find out where you can find the lowest quotes. There are several different places that you can look for low rate quotes, but some places are better than others.
You have to consider how much time you have, how you prefer to do your business, and how many companies you want to get quotes from before you just call companies directly.
Comparison shopping is a must, and it can be very time-consuming process if you do not know which resources can help you. Before the Internet became popular, it was common for vehicle owners to visit agencies or brokerages face to face or call agencies to price rates.
Agencies would give quotes for one company and brokerages would charge a fee to give you the best rates from the best insurers.
It was also an option to call a 24 hour call center to quote rates with a specific insurer at any time of the day.
The licensed agents on the phone would give you the information that you were looking for, but you would not get the personal service you would get a local agency because you would always be directed to a new person each time you called the center back.
All of these are options still, but they are not the best options for consumers who want to multi-task and get multiple quotes at the same time.
If your time is extremely important to you, the Internet is the best place to find cheap car insurance.
You can either visit the insurer’s website for a rate quote, or you can visit a single site and get accurate rate quotes from several different carriers on the same platform.
The benefit of using the brokerage-style platform to find cheap rates is that you will be directed to the premiums with reputable insurers only.
You will also find the rates to several insurers right away without inputting all of your information a dozen times just to get to see a dozen rates quotes.
Now that you know where you can find really cheap car insurance quotes, it is time to start comparing rates.
Always do your homework before you fill out an application and make your deposit payment for the coverage.
As long as you are confident with the list of insurers you can choose from, you can focus on pricing.
To focus on the pricing aspect, use a FREE rate comparison tool that is just like a broker-style tool without charging you the fee.
Once you locate the best priced policy, apply for the insurance plan.