Discount Insurance Companies:  What to Know Before You Buy

If you are looking for a new car insurance policy you may have found that discount insurance companies are very appealing because they are so much more affordable.  While you can get great policies for a great deal, you should be sure that you really look at these policies before you buy.  There are some things you should do before you buy that will ensure you get the best policy for your needs.

Read the fine printSome insurers are able to offer low rates by giving skeleton coverage. You gave the companies identical information but they may not have returned identical policies. Check the deductibles on the policies. Deductibles weigh heavily on the cost of insurance. See if all of the policies offer uninsured driver clauses. Look closely at coverage areas. Some companies restrict their policies if you drive extensively out of state.

The companyJust as with home loan companies there are auto insurance companies that specialize in writing insurance for people with poor credit and/or poor driving records. If you have requested a quote from this kind of company their response may automatically be considerably higher than other companies. If you don’t have poor credit and/or a poor driving record immediately eliminate from your search companies that serve these markets.

Look at company recordsYou want to do this before you buy.  States keep records of how insurance companies respond to their customers. Files on insurers will include their response times, their histories of paying claims, any complaints or suits filed against them as well as other important consumer information. Note and eliminate any companies which have numerous complaints against the company.

Remember, having a low car insurance premium may not be worth much if you don’t have the coverage you need or can’t get your car insurance company to respond when you have an accident.  By following these simple tips you will find it much easier to spot the poor quality policies and find those that really do meet all of your needs.