Cheap Car Insurance Isn't Always the Most Affordable Option
Find out if you’re getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
- Possible consequences of choosing cheap car insurance
- A lower premium might not be the best option
- Getting the best cheap car insurance
When shopping for pretty much anything, most people are looking for the best deals, hoping to spend as little as possible.
This mindset, with a main focus solely on how much money you’re spending, doesn’t always work when it comes to shopping for car insurance. In fact, choosing cheap car insurance could actually be risky and mean you aren’t adequately covered.
Possible consequences of choosing cheap car insurance
According to Allstate, purchasing cheap car insurance isn’t always a good idea—because you could actually be putting your assets and future earnings at risk.
How so? Allstate points out that almost every state requires drivers to have liability insurance, with "bare bones" minimums that may not be enough to protect you financially if an accident occurs.
But if you increase your policy, even as little as $25 a month depending on the state you live in, you could increase your liability limits enough to offer much better protection. This coverage comes in handy if you need to put in a claim, and could result in fewer out-of-pocket expenses than you’d have with cheap car insurance.
One way people try to save on car insurance is by dropping comprehensive coverage, but this is another area that Allstate suggests thinking carefully about.
That’s because comprehensive coverage is usually pretty inexpensive—but if you don’t have it, you’ll likely have to pay out of pocket to repair or replace your car if it’s stolen or vandalized.
A lower premium might not be the best option
Choosing a plan with lower premiums over more expensive ones may seem like a great idea, but it also means you’ll spend more if you have to make a claim.
On the other hand, if you choose a plan with a lower deductible, but that has higher payments each month, you will have better coverage if an accident occurs. This is because a deductible is the amount you pay before insurance kicks in when an accident occurs.
So with a higher premium plan, your insurance company will be responsible for covering more of the costs associated with a claim—and your out-of-pocket expenses would be less than they would be with a lower premium plan.
Put simply, looking only at what you’d be paying each month for car insurance could end up leaving you with financial problems if you need to put in a claim and aren’t properly covered.
Getting the best cheap car insurance
It’s still possible to find insurance at an affordable rate—you just have to look at other factors besides cost.
Luckily, Jerry can help. The free app will save you the hassle of trying to find the most affordable car insurance that also will give you the best coverage. It compares quotes from up to 45 different insurance companies for you in under a minute, without any long forms to fill out.
Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.