Owning a car is expensive! There are car payments, gas, tune-ups, and, of course, car insurance. We all want to save as much as we can, wherever we can. That means that we often spend a lot of time shopping around for car insurance quotes. This is a smart thing to do; the more quotes you get, the better a deal you are likely to find. Just remember that if you find a deal that seems too good to be true, it probably is.
Yes, cheap insurance would be wonderful. But would you want to give up good coverage for a low monthly bill? Make sure you know what you are paying for. If the number seems a bit low, you are probably only getting liability insurance. Liability insurance is required by law in most states; it’s the type of insurance that covers any damage you do to other people or their property if an accident occurs. However, it doesn’t cover your car in case of an accident nor does it protect you from weather damage, theft, etc. To be covered in those scenarios, you need collision and comprehensive coverage. If you’re seeing abnormally low car insurance quotes, chances are they don’t include these non-mandatory types of coverage.
You also want to pay attention to what your deductible is. A great way to save money on insurance is to choose a plan with a high deductible, but there is a down side to making that choice. The deductible is the amount you pay out-of-pocket before your insurance starts to absorb the costs. If you have a high deductible say, $2000 you will have to pay for the first two thousand dollars worth of damage in case of an accident. So even though you will be paying more month-to-month with a higher deductible, it could end up costing you less in the long run.
Finally, you need to protect yourself from scam artists. If you’re seeing extremely low car insurance quotes, you could be the victim of a scam. It may seem far-fetched, but it does happen. It happened to drivers in Detroit just a couple of years ago, in 2011. Some red flags include unbelievably low costs and insurance agents who are difficult to reach. If you suspect a scam, check to make sure the agent you are dealing with is licensed.
Seeing low car insurance quotes is usually great news! And by shopping around, your chances of getting a great rate do increase. Just make sure you know what you are getting into. Check the types of coverage the policy includes, pay attention to the deductible, and look out for any suspicious behavior. If it all checks out, congratulate yourself on finding a great rate.