The Top 7 Reasons Not To Choose The Cheapest Car Insurance

Car insurance is extremely expensive for some. So when the chance comes to purchase a cheaper premium comes your way, stop. Stop and take a look at what these “cheaper” policies cover and if they will actually do you more harm then good.

1. The cheaper insures are usually cutting corners and giving terrible coverage. At best, this can mean that  you have limited payment options. Can you call this company early in the AM to pay off your bill so that you can drive your kid to daycare in the morning legally? What if you have a crash and have to wait a week because their claim adjuster is on the other side of the country?

2. Your little company that is “cheap” probably won’t fight for you. Example, what if you small insurer attempt to claim a claim with a larger auto insurer. They may not fight at all for you and instead pay the claim and hit you with higher premiums. They lose and you lose even more money because they need to recoup their losses.

3. A small company that you stay with for a large amount of time may not raise  your premium anymore. However, a larger company will probably give you many more discounts and even lower your premium.

4. A lot of cheaper insurers tend to up the rate on your first bill do to “new information. They basically lure you in with a teaser rate that is subject to approval, but never actually gets approved. You’re then left with a higher bill you never expected.

5. A single ticket may be enough for your insurer to cancel your insurance.

6. You may learn that you have unbelievable new policies such as the requirement to use a specific body shop or terrible second market parts.

7. Your insurer may not be financially capable of paying out multiple large claims in a short period of time. Even though you might not be a claimant, if the company goes under, you will have to go back to your old company or find a new one. This can be tedious and taxing as well as costly.

So before you “jump the gun” and purchase a “cheaper” insurer make sure to do your homework. Check them out and see if they have an reviewers. How do they match up and do their old clients have anything to say online?

This entry was posted on Tuesday, August 31st, 2010 at 6:27 am and is filed under Loan Insurance Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.