Car insurance is expensive. Especially if you’re a new driver, or you have a blemish or two on your record, keeping yourself insured is a costly proposition. Fortunately, there are insurance companies whose main selling point is how much you can save, and who specialize in providing lower premiums for those who don’t have a lot of money. Just what do you get with this cheap car insurance? Is it worthwhile? For the most part, yes. But there are pros and cons.
Pros of Cheap Car Insurance
The major advantage to cheap car insurance, of course, is that you save money. Say your current insurance premium is $2,000 per year. If you can save 15% by switching to another company, that’s an extra $25 a month, or $300 a year. Over time, it really adds up.
If you’re struggling to make ends meet, a company offering lower rates can provide you with the minimum coverage you need in order to drive legally. It may also allow you to get a bit more coverage than you would at another company, for better peace of mind.
Cons of Cheap Car Insurance
The downside to cheap car insurance is that sometimes you get what you pay for. The way many of these companies keep their rates low is by cutting corners. By hiring fewer staff members and paying them a lower wage, they can pass the savings on to you. Unfortunately, that may also mean subpar service when actually trying to file a claim, or do something else with regards to your policy.
This might even extend to receiving a payout. There are plenty of reputable low-cost car insurance companies that will give you your money without hassle after you file a claim. However, some may make delays and excuses, to avoid paying.
Of course, there’s a simple remedy for this. A little research on Yelp, and the Better Business Bureau, can give you a feel for other people’s experiences with an insurance company, and provide insight into what it’s like to go through the claims process. By doing your due diligence, you can hopefully find a cheap car insurance company that will still meet your needs.
The Bottom Line
So, is cheap car insurance worth the price? It can be. If you have an accident or traffic ticket on your record, or something else that drives your premiums up, a cheap insurance company can help you get the coverage you need to keep driving, without being prohibitively expensive.
Or if you’re a perfectly safe driver who just wants to save a little money, cheap insurance can help you too. As long as you drive carefully to avoid accidents, and obey traffic laws, you may never even need to deal with them beyond paying your premiums.
Whatever insurance you get, always do your homework first to make sure the company is a reputable one. With a little bit of research, you can find the insurance that’s right for you, and drive safely and securely.
Contact us to learn more about how cheap car insurance can benefit you!