First of all, you need to understand and accept the fact that the cheapest car insurance may not be the one with the best price. Car insurance is like anything else. You pay more for more coverage. Most people understand that concept when they go to the grocery store. If a 32-ounce bottle of ketchup costs more than a 20 ounce bottle, it’s understandable. You get more ketchup. The same is true for car insurance because it is using the exact same principle.
If you have liability limits that pay up to $300,000 you get more coverage than a policy that only pays $100,000. The problem arrives when two different companies use two different ways to express the coverage. One uses single limit and it shows as 300,000 and the other uses a split limit shown as 100/300/25. Which gives you more? The split limit does if three or more people are injured and there’s $25,000 worth of property damage. The single limit does if only one person is injured and it costs more than $100,000 for their medical care, or if the property damage is more than $25,000. When you compare split limit to single limit, get a close to comparable quote like 300/300/50. Never accept insurance with lower limits of liability and expect it to be the cheapest car insurance because the price is lower. You simply just got less converge and may have paid more per thousand. It’s just like the ketchup example used above.
If you’re looking for the cheapest car insurance be aware of your deductibles. Most auto accidents don’t total out the car. There are many smaller claims that insurance clients never report because the amount is less than the deductible. The higher your deductible, the less likely the company has to pay a claim. When you look for the cheapest car insurance make certain that the quote you received has the same deductible for both comp and collision as your present policy does. If you don’t, you aren’t comparing the same things. The car insurance company knows that they have fewer claims and less paperwork if your deductible is higher and they obviously don’t have to pay the additional money that you’d collect if you had the lower deductible. The insurance company adjusts the premium based on those facts.
See if your uninsured/underinsured motorist coverage is the same. This liability section covers you, your vehicle and your passengers if the other driver doesn’t have insurance. You want the same coverage that you’d offer the other party if you were at fault. This should also be the same for all quotes so you actually can find the cheapest car insurance.
Watch out for those additional coverages. You may have towing or rental reimbursement and your quote from the new company doesn’t list it. These two coverages cost premium dollars and if omitted, of course the price is cheaper.
If you find the cheapest car insurance and decide that you want to switch companies, always apply a month before your insurance runs out and make the date it starts coincide with the day your coverage runs out. This gives the underwriters, the people who give the final rate, a chance to look over your record and make that decision. The representative that quoted the rate could error or forget important information that the underwriter finds later, and then your rate will go up based on the new facts that the underwriter found. The final price may not be the cheapest car insurance and you may want to keep the coverage you already have and cancel the other one before it takes effect.