What to Know About Auto Insurance Discounters

When you consider the excess of commercials – both on air and off – that make long and winding promises about what companies can offer you as the insured, you often must wonder what they might be omitting in the fine print. Most can back up part of their claims, but some of what you hear is hyperbole. Because they do not yet know your individual driving record, your place or residence or your accident history, what they can promise you is quite limited.

All insurance companies must quote you a monthly premium based on specific kinds of information. Typically the ask for the make and model of your car, how many traffic violations you have received over the last five years, whether you want collision and liability insurance or just liability, the state where you live and how much you are on the road in a given year.

Need Discount Auto Insurance?

Need Discount Auto Insurance?

Insurance companies also use market information that has been gathered by research companies about how your car performs compared to other cars that are comparable makes and models. The auto insurance discounter considers factors like the theft rate and the ability of your car to sustain a crash test when he decides on your projected insurance premium. Sometimes, if the performance data is not favorable, you may have to carry a high premium. Estimates that come in on the high end force some car buyers to find another car similar to the one they want in order to be able to afford the insurance payments.

Although auto insurance discounters have a wide range of experience in the insurance industry, it is still not the soundest idea to take their offers blindly. Credible agents should be registered with the A.M. Best Company, which gives financial and insurance companies a credit rating based on how they do business. If you are negotiating with a company that the Best Company has given a credit rating lower than B++, you may not be dealing with a reputable firm. Online portals that encourage side-by-side comparisons are good tools for making a decision.

Discount auto insurance help many drivers meet the legal requirement to carry auto insurance, especially when the drivers have been turned down by other companies. This creates a whole pool of companies and agents who might specialize in insuring risky drivers, and not all of them will come bearing good gifts. Before you sign on the dotted line, be sure to weigh all of your options.