Can You Find Cheaper Auto Insurance Companies?

The answer to this question is pretty easy and absolutely yes. When you have hundreds of companies serving the same market it is not hard to find cheaper providers. However, there are several considerations to be taken into account before you jump on a lower priced product.

Buying Insurance Is Different from Buying Physical Products

If you are looking for new shoes you can drive down to the mall and see various products. You can touch, bend or even smell the leather. You can use your senses to check the quality and determine if the price is right. This is not the case with policies and you won’t even need them unless you have to make claims.

A lot rides on the name printed on the policy documents. Reputable companies would stand out with the way they handle claims, customer complaints and offer service. This is the very reason why many people would only buy coverage from companies they know and trust. This could be the company that his/her father has been with for years or highly recommended one by friends and other family members.

How Could Some Carriers Offer Cheaper Rates? 

There are good and questionable reasons for this. A company can legitimately offer better deals compared to the competitor for the similar quality product. The last part is important to look into further. The quality of the product and reliability of the source should be equal before we start comparing prices.

In other words, a cheaper policy from an unknown provider cannot be compared to a policy offered by one of the most established and respected firm in the industry. It is like comparing prices of two star hotels with the prices of four start ones. You know the rooms and service are going to be different hence the price difference.

If you are convinced that you are getting as good coverage as your current deal and you can count on the new provider you may consider switching. You wouldn’t even think about it unless they offer you a few hundred dollars savings. You might as well keep that money in your pocket.

Some companies are evidently better run than others. Furthermore, they may have the brightest risk assessor and cutting edge underwriting software. All these reduce their exposure to risk and their overheads. When they are running a tight sheep they can afford to undercut the competition.

Simply, not every cheap policy is desirable and you should always doubt the quality because something is cheaper. By asking how is this possible and looking into other alternatives you can determine if a good deal is real and you will have no problems when you have claims.

What Should You Look to Find on Your Car Insurer?

First of all we have to assume that you can afford to pay a little if we need to. When money is tight you cannot look at all your options and you will have to accept that some products are out of your reach. Then, price will be the main determining factor for you. Otherwise you can have a look at a few other areas.

There are a few websites online that are known to rank companies according to various criteria. You want to be checking the sites that look at customer satisfaction and claim handling as their main criteria. Some companies are consistently ahead of the competition in terms of service and handling claims. You buy policies so that you are compensated should anything happens with your automobile.

A few people look at size as an indicator of customer satisfaction. You cannot really argue with this logic. When so many people are happy with the provider how could you doubt that majority of them has done their homework and staying with the company because of full satisfaction?

Certain Carriers Can Serve You Better

People get all sorts of discounts for so many different reasons. Therefore you should be looking for a company that is going to offer you the largest savings. As we discussed above, a company can offer you the best premium and still be highly regarded. It is plausible that their risk assessment is perfectly aligned with your current circumstances.

Some companies are doing better in certain segment of the market. For example, they may be loving families and their cars and offering better deals for them. Married people are considered lower risk by some companies and you can qualify for further discounts for just being a family man.


There are so many ways to look at one problem and there may not be one right answer in most cases. In addition you will have own intuitions, preferences and political views just because you are a human being. Your choice must make you comfortable as well as logically making sense.

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