Whether you own one vehicle or five, have 2 teenage drivers or have been driving for 40 years, just about everybody is looking to save money on car insurance.
If you’re asking your friends and family, or even Google, “Who has the cheapest car insurance?”, you might be on the verge of making a costly mistake.
Contact us today to find an insurance plan to fit your needs and budget.
Who Has the Cheapest Car Insurance?
You wouldn’t need me as your insurance agent if there were a standard answer to this question. The answer is different for every, single household. Why? Let’s discuss!
Every insurance carrier has underwriters and actuaries to analyze the loss experience of their client base as a whole. They slice and dice these numbers different ways to find differences based on driver characteristics such as age, loss history and zip code , as well as vehicle make, model and loss experience nationwide of that vehicle. However, each insurance carrier weighs these different factors well, differently, to arrive at your personal premium.
One company may have determined that teenagers get into the most accidents, another one may argue that senior drivers do. One company might rank your zip code as carrying a lot of risk while their competitor thinks the neighboring zip code is more risky.
Some companies have built a business on not fully paying claims. They are impossible to reach and their adjusters simply never call you back. This is absolutely true – in our 16 years of insurance experience, we’ve seen it! Their business model is built on not making the customer “whole” after an accident, so they frequently have lower rates. However, you will be left holding the bag in the event of an accident with lots of unpaid bills and an unrepaired vehicle. Maybe even a nice lawsuit if you were at fault in the accident.
Other companies offer rock-bottom introductory rates or new customer discounts…these discounts fall off at your first or second renewal, meaning you will get massive increases after the first year or two. You might start off thinking you have the cheapest car insurance available, only to have your premium skyrocket later on.
Long story short: there’s no one company that is consistently cheaper than any other company on the market. The one that offers the lowest rates for your neighbor or relative may not offer the same rates to you.
So Where Do I Get the Cheapest Car Insurance?
There’s nothing wrong with being frugal, but auto insurance is one of those things where the old adage “you get what you pay for” is true.
Instead, the question you should be asking is: “Why do I want the cheapest car insurance?”
With insurance—as with anything else—a cheaper price typically comes with lower quality. Think about the last thing you described as “cheap.” Was it used as a compliment? In all likelihood, you spat out the word with a derogatory hatred meant to indicate that the item was flimsy, malfunctioning, or just poorly made.
With insurance policies, “bad quality” usually looks like higher deductibles, less coverage, more exclusions, and even bad customer service.
What you should really be looking for is the best value. Getting the best bang for your buck, so to speak, will balance an affordable price with the type of coverage that will actually protect you after an accident, theft, or other form of loss.
How To Get the Best Value on Car Insurance
First, let’s talk about what not to do.
There’s a common misconception that you will pay the lowest rates by purchasing “bare bones” insurance policies with the minimum coverage required by law. Buying insurance is kind of like shopping at Sam’s: the more you buy, the cheaper it is.
This is because insurance carriers offer their best rates to policyholders they see as being more responsible. And buying more coverage usually indicates that a policyholder is more responsible than someone who purchases only the state minimums.
We always advise our clients NOT to reduce their insurance coverage in an effort to save on car insurance. No one can predict when damage or loss will occur; the only way to properly protect yourself is with adequate insurance coverage.
It is more advisable to make sure you are using all the discounts your policy offers. That way you can get a lower rate without sacrificing coverage. Contact us to make sure you are getting all the discounts you deserve.
Independent Insurance Agents: Your Best Bet!
There are a ton of car insurance companies out there. Many of them you might not have even heard of. So how do you find the time to compare your rates and coverage with each one of them?
Luckily, you don’t have to.
By seeking the assistance of a local independent insurance agent, you can get a curated collection of quotes that are customized to your unique vehicles, risk factors, and budget. In short, your agent can find the best policy for you at a price you can afford.
And because they’re an independent agent, they aren’t tied to offering policies through only one particular carrier.
Conclusion
So who has the cheapest car insurance? Each carrier reduces or adds premium for different things, so there is no one insurance carrier that will be the cheapest every time. In fact, that’s why there are so many insurance companies.
If there was one single company that consistently offered the best product for the lowest price, it would (eventually) be the only insurance company remaining.
The fact that the insurance industry has so many companies testifies to the fact that there’s an ideal customer for all of them. But all this choice can lead to one thing: customer confusion!
THE GOOD NEWS!
Fortunately, this is exactly where an independent insurance agent can help.
An independent agency like Worthen Insurance Group will sort through many companies and policies to find the ones that are the best fit for you. Call or Click to get your quote today.
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