The downsides of going with a cheap auto policy.

Going with Cheap Local Insurers

Often times you can find local insurers that are cheaper then the big companies like Geico, Allstate, etc.  However big companies are big companies for a good reason and their success derives from being equipped with large call centers and highly trained employees that offer prompt service when you need it.  The cheaper car insurance providers with 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. It todays modern times not being able to handle your insurance online will cause some issues down the road.

Reducing Your Insurance

If you decide to reduce your auto policy by minimizing the plan you naturally are increasing the risks of having to pay severe penalties in the event something goes wrong.

Specifically in the event of an accident, theft or damage you will be responsible for more bills on your own. And if you’ve cut collision coverage, for example, and your car is severely damaged, you’ll be financially responsible for repairing all damage to the car including small dents, crushed bumpers and scratched paint. If you’ve cut your comprehensive then you will have to pay for damage caused by natural disasters. These bills can quickly run into the hundreds and thousands.

Depending on your situation, it may be better to spend a little more each month to protect yourself from facing large repair bills. You can also shop around and compare car insurance rates to see if you can save money just by switching insurers. To confirm you are insured with a reputable company, learn what their customers are saying.