Pros & Cons of the Cheapest Auto Insurance Companies

No cute geckos here. Say hello to America’s cheapest auto insurance companies and their pros and cons

They may not have the splashy mega-bucks ad campaigns featuring talking geckos or cheerful cashiers like the big car insurers but America’s cheapest car insurance companies are staying busy writing insurance policies for millions of drivers across the Nation.

Using a cheap auto insurance company makes sense when trying to save money but since they are also usually smaller than the major car insurance providers people sometimes prefer them because it’s a more personal shopping experience than dealing with the bigger insurance provider. But all the pros and cons of cheap car insurance providers should be weighed in order to determine if they fit a driver’s current financial and insurance circumstances.

Pros:

  • Customer Service – These companies usually have superior customer service since drivers are typically treated like a family member instead of a policy number as is sometimes the case when dealing with one of the major car insurance providers.
  • Better Prices – Basic car insurance premiums on coverage such as liability, collision and comprehensive are better than the prices offered by the bigger car insurance providers.
  • Immediate Savings – Since they are paying less for insurance with a cheap car insurance carrier, drivers are able to quickly see the savings in their budgets.

Cons:

  • Association Discounts – The association discounts offered by the bigger car insurance companies are not offered through the cheapest car insurance carriers.
  • Customer Service Infrastructure – Unlike the bigger car insurance providers with their large fully-staffed call centers, these cheaper car insurance providers with their smaller call centers may have policy holders on hold for longer than normal times. Additionally, their websites may only display a policy holder’s information and won’t allow policy holders to make changes or even make payments online. They also won’t allow a customer to get quotes online.
  • Not Everyone Eligible – Even though they may be cheaper, they are not necessarily more accessible since some won’t insure drivers with spotty driving records. Many also won’t insure sports cars or high risk vehicles.
  • Low Coverage Area – Many of them are only available in a certain region and have a low number of insurance agents.
  • Small Selection of Coverage Options – Not all the cheapest car insurance carriers offer coverage for homes, motorcycles or boats which does not give drivers the opportunity to take advantage of bundling coverage to save money.

While there are several pros and cons of going with the cheapest car insurance providers, ultimately a decision should be made by researching what company offers the best blend customer service, discounts and rates. Drivers should also research the company before agreeing to any insurance policy and have a thorough understanding of the details of their car insurance policy. Any questions should be answered before entering into any agreement. Drivers having already chosen a car insurance provider should periodically review their policy and compare it against the competition to ensure they are always getting the best rate since things are always changing in the competitive world of car insurance.