Tue 18 Mar 2014
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Comments Off on Should You Always Choose the Cheapest Car Insurance Quotes?
When the circumstances dictate motorists may have to look for the cheapest car insurance premium and lowest coverage just to be legally driving. This is understandable as many people drive without even buying a policy. However, many people are not cornered with money that tight and they can make choices. In such cases they would look at their options and try to arrange a reasonably priced policy, decent coverage and reliable insurer.
People buy policies to make sure certain uncertainties covered properly, not because the law enforces certain requirements. There are many policies that they do not have to buy like home or life insurance but it is prudent to do so. In the same way about 70% of the motorists buy full coverage that includes the minimum liabilities, collision, comprehensive and uninsured driver coverage.
Most car insurance companies would come up with goods when their policyholders need compensation. Nonetheless there would be one or two that would not make you jump a few hoops before they fix your car or pay the final settlement. Many people do not have stomachs for these companies. They would rather stay away from them even it means they have to pay a little more.
It is true that paying a little more does not guarantee a better service but may extend your choices. Let’s have a look at the options here. For example, you got five auto insurance quotes from various companies and they are $2,800, $1,900, $1,600, $1,500 and $900. Here you can see that there are a few companies around $1,600 range and it looks that this figure is fair.
Two quotes sticks out on both extreme end. There is no doubt that you would dump the $2,800 quote. Why would you not if all those companies are offering the same coverage and you still have four choices? The real question is would you dump the $900 quote as well? Of course not if it is provided by one of the top auto insurers but you may want to make sure that they are quoting on the same bases and there are no catches.
You would think harder when this quote is offered by a company unknown to you. At the end of the day, you would worry that they would struggle to pay claims and find a way out of them. At the end of the day, they are paying the claims out of the premiums collected. And if they cannot collect enough premiums where they would find the money?
Your common sense would kick in and think that they can only save so much money by running an efficient business. Where would they be able to cut the costs? This is a serious and legitimate question to ask yourself. If we go back to the example and say that the lowest premium quote was $1,200 you may reason that it is not much far off from the rests and may be acceptable.
So, the answer depends on your circumstances and what your guts is telling you. If it does not feel right it probably is not. The best advice to give is to get several quotes and line them up. Then you can decide which to dump and which to take.
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