Is "cheap" car insurance good enough?
April 14, 2022
Hey there, it’s nice to connect with you. You may be here because you’ve been wondering how to find cheaper car insurance and whether or not it's the right choice for you to make. You’re not alone—according to Google, "cheap car insurance" got an average of 201K monthly searches in the U.S. in 2021. That’s a lot of people asking the same thing you are, “Is “cheap” car insurance good?”
The answer? It can be. As an auto insurance company in Arizona and Rhode Island, we’ll share why the cheapest option may not be the right saving option when shopping around for car insurance.
Does cheap car insurance offer good coverage?
Of course, the idea of saving some money on a monthly bill by selecting the cheapest auto insurance sounds great. But is it the right choice? Our insurance team weighs in on why cheap auto insurance may cost you more than you may realize. Here are three reasons:
1. To address the basics: auto insurance is essentially a contract between you and the insurance company. You pay a premium, and in exchange, the insurance company agrees to pay for damages in a defined set of scenarios such as accidents, claims, losses and events.
The key thing is that almost no two insurers sell exactly the same coverage (protection). For example, two people might buy collision coverage from two different insurers and learn that the actual scenarios they are protected for are not exactly the same.
There may be differences in which drivers are covered—did you let your boyfriend drive the car? Is he listed as a driver on the policy? Also, something to consider is that some policies extend coverage to cars you rent or borrow for your personal use, while others do not.
2. Cheap car insurance can mean less coverage overall. This may present itself in the removal of coverages that are not mandatory by law, lower limits (buying just what you need to be “legal” on the road) or picking higher deductibles which means paying more out of pocket when your car is damaged in an accident.
3. Customer service—when you need it, will it be there for you? The premiums paid for insurance are used not only to pay claims for customers, but also to “run the business.” So, cheap insurance could translate to poor service, long wait times and generally a hassle when you need help—whether that is making changes to your policy or waiting to get a claim handled.
So why might some cheap insurers cost you more in the long run? Well, no two insurers will be exactly the same; you may have less coverage and your experience as a customer may be less than ideal when it comes to getting help.
Car insurance should have your needs in mind and a good rate without compromising coverage and experience.
There are better ways to save on car insurance
Even if you may be the world’s safest, mindful driver, don’t think that justifies cheap auto insurance with potentially poor coverage. Because unfortunately, when the unexpected happens—you may regret that decision.
You can have great coverage at an affordable price. There are other ways to lower your car insurance costs. Take us at HiRoad. You can save up to 50 percent each month by practicing safe, smooth moves on the road. Once you’re a HiRoad customer, you’ll gain insight into driving scores such as (Distraction Free, Smooth Driving, Driving Patterns and Safe Speeds).
Because honestly, nothing can feel better than making it to your destination safely and knowing you were rewarded for it. But if you’re wondering about the other ways you can save on auto insurance, take a look at these suggestions:
Shop around and compare insurance quotes
Raise your deductible
Maintain a good credit history
You can have affordable car insurance without compromising coverage or a good customer experience. Because car insurance, like HiRoad, was made with you in mind. As you take the high road behind the wheel, we can reward you with savings (up to 50 percent) every month.
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