Everyone who drives must have car insurance, except in a few select states, and even there it is advisable. With the large number of providers available and the state of the economy, many are looking to lower their costs by switching to a new provider. Unfortunately, some people simply use the bottom line price of the insurance when comparing policies without looking at the other factors.
Deductible Cost
While the monthly payment may save you majorly, look at the cost of the deductible. This is what will have to be paid out of your pocket should you need to utilize your insurance. While no one has the intention of ever actually using their policy, immediately after you have had a wreck is not the time to determine that you cannot afford to pay the deductible. You will either have to sacrifice something else in order to pay the deductible or go without repairing your car and neither of these is a pleasant option.
Level of Coverage
While insurance provider X may you offer you a policy that is much cheaper than what you are paying, look closely at the level of coverage being provided. It is important to understand how much they will pay to repair your car, how much they will pay for any medical bills, and how much they will pay for the many other intricacies involved in an auto insurance policy. If the policy is cheaper but does not offer the coverage that you require, it makes little sense to switch. When you look at the fine print the provider my not seem to offer the great deal that they once did.
Discounts
When looking at different quotes, ensure that you are being offered all the discounts that are available.There may be a multiple car discount or a discount for being a certain age. There are also often discounts based on features of your car, such as an alarm or always on headlights. Ensure that the companies you are contacting are taking all these factors into account when providing you a quote so that you are getting the best realistic price from each provider.
When looking for an insurance policy, it pays to compare apples to apples. A really cheap policy that is going to leave you in the cold when you need it really costs you much more in the long run.