Budget car insurance will save you hundreds of dollars a year on the average car insurance premium. Today, there are a number of budget car insurance companies ready to provide you with the basic requirements to insure yourself legally at a very low cost. There are also a number of options at traditional insurance companies for discounted rates. Ultimately, you have to determine your priorities to choose whether to go with a budget car insurance company.
When to Use Budget Insurance Companies
Since insurance is required by law, a number of budget insurance companies are cashing in on the needs of low-income individuals to meet minimum state requirements. These consumers expect very little in return except for a low premium. In most cases, these people will not seek a high number of claims. They will either pay for damages out-of-pocket or leave damages unrepaired. If this describes you, budget car insurance may be a good option:
- You are not paying for customer service. In fact, the customer services scores on most budget car insurance reviews are very low. But, since you do not want to pay the extra money for good service, you will be happy regardless.
- Saving money is more important than covering claims. You either expect to drive your car very little, meaning you will have a low chance of accident, or anticipate not filing claims on most minor accidents.
- You want to have few options in your policy. Instead of sitting in an agency office or in front of a computer for hours, you'd rather be given a boiler plate policy that meets basic needs, even if it doesn't meet specific needs.
When to Use Mainstream Insurance Companies
Most insurance policies will have options that make your coverage less expensive. If you are not ready to go with the budget car insurance or budget van insurance option but still want cheap coverage, looking into these options will pay off. You will pay slightly more than with a budget insurer, but you should go with a mainstream insurance company if the following applies to you:
- You have a lot of questions, and you want them answered. A mainstream company will do a better job of taking the time to explain your policy and options to you. If you have a claim, a mainstream company will typically walk you through the process to a greater degree than a budget company.
- You care about more than your premium payments. If you know you cannot afford to pay a claim out-of-pocket and believe you have a fair chance at making a claim each year, then it is best to pay the premium for car insurance. You may also want the coverage because you drive a lot, have a young driver in the family or live in a high risk area.
- You are savvy with insurance options. If you know how to navigate deductible and limit options to truly cut your insurance premiums, you will often find a traditional company just as affordable as a budget company. The same goes for a person with a great driving record. You may get better coverage at the same cost from a traditional insurer.