True Cost of "Cheap Car Insurance"

The ads are all over the place, and almost every Auto insurance company has chimed in.

“We’re the cheapest”

            “Save more with us”

                        “Hey you! Over here! Cheap auto insurance!”

It’s not surprising there’s a race to the bottom in Auto insurance. Everyone (or at least everyone who wants to drive legally) needs it, and it’s quickly become a commodity. So why not get it on the cheap right?

The thing is, not all Auto insurance is created equal. Sometimes they can get you a better rate by cutting expenses and overheads. But all too often, to save you some money, they have to sacrifice quality.

That means if you get a great price up front, you might end up paying for it when you actually need to use your insurance!

So know the difference between quality insurance and value insurance. Because if you just go for the cheap, important things can suffer, like:

Coverage

To get a better rate, you might choose or be offered lower Auto coverage limits. That means you take on more of the responsibility yourself, and have a higher deductible. It also means that if you’re ever at fault in an accident, you might find yourself under covered and up a creek, owing more out of pocket than you thought! Cheaper coverage might also leave gaps, so while you think your new SUV is fully covered, you actually only have enough to cover this.

Quality coverage might cost a little more, but you can get higher limits and more coverage options that let you cover your car the way you want.

Policy features

Cheaper Auto insurance might offer great prices but not offer valuable features or options. To keep costs down, they may even raise your rates or drop you after just a single claim (fender bender? You’re done!).

Quality coverage comes with built-in policy features and additional paid options like Small Claims Forgiveness, Incident Forgiveness, and Comprehensive Claims Forgiveness. That way, you don’t have to worry about losing your coverage because of one little dent.

Claims processing

To help cut costs and get you a lower rate, “value” Auto insurance companies might not be able to offer comprehensive or quality claims services. They might use outside adjusters, or not have solid 24/7 support. So you’re stuck taking the bus while claims drag on forever.

On the other hand, quality Auto insurance usually comes with an agent and highly trained, experienced claims professionals. For many it’s worth the money in the long run, because they get claims settled quickly and keep you in the know with less hassle.

Attention and convenience

Value insurance is solely focused on price, not as much on customer service or convenience. That may seem fine at the start. But just try and get a question answered, service your policy, or get some personalized attention, and after hours of frustration you’ll think again.

Quality Auto insurance is there for you when and where you need them, with personalized service, 24/7 support, and convenient online access to documents, billing, and policy information. They save you time and money by giving you what you want before you ask for it.

Big savings may sound great from the outset, but remember, even in Auto insurance, you get what you pay for. And sometimes that savings up front really means bigger costs and hassle down the road. So do your research before you buy, and know that the price you’re getting includes all the coverage, services, options, and extra you want to make it worth your while.

Farmers takes all these qualities and benefits into consideration with every policy we write, and you should too, before you buy.