Are you gambling with your car insurance?
There are a lot of popular programs being advertised by major companies that promote the idea of getting cheap car insurance by selecting the coverage that you need and declining other coverage. The ads tell you that you can name your own price for your policy. Of course, you have to guess that you will have to pay some minimum amount to be covered.
For those of us who always thing that buying insurance is a bit like gambling, there is an obvious attraction to being able to pick and choose the sort of risks we want to cover.
What coverage do you need?
For example, your state probably has required minimum liability coverage. You need that. If you still have a loan, your lender probably requires full coverage so they can get their money back if the vehicle is damaged. You need that.
You may not need to cover the cost of a rental car if your own vehicle is being fixed to stay legal and within the terms of your auto loan or lease. But it is comforting to know you can get alternate transportation, and this coverage usually does not cost a lot. However, it does add a few dollars to the total, and if you can get to work or the store without your own car for several days, you could skip this coverage. If you would have a big problem if you lost your vehicle for a few days or a few weeks, you should probably consider keeping this feature on your policy though. Bills for rental cars can add up!
Naming your price has benefits!
Name your price systems can benefit consumers. They make the process of purchasing auto insurance more transparent because customers understand what they are paying for. I am just concerned that it can be very tempting to cut some policy features that may come in very handy when car owners do need to make a claim.
Getting good coverage does not always mean we want to find the very cheapest rates, though low rates are attractive! We really want to concentrate on finding affordable rates that provide us with good value.
In my opinion, it is worth a few dollars more to be sure we have selected a company with great customer service, fast claims processes, and top quality coverage. The day after you have an accident is a terrible time to regret buying a cheap policy.
You could be paying too much because you are not taking advantage of all of the auto insurance discounts that you qualify for. This is common. Unless you have shopped around for a policy recently, you may not know what offers are on the market for a driver like you.
Save money on your auto policy.
One great way to save a lot of money is to compare quotes from a handful of top car insurance companies. This is not that difficult to do. You can find a number of online quote systems that quote prices from more than one company. If you can compare 5 quotes, you have a good chance of finding out which company really will provide you with the best value for your money.