Is bargain car insurance worth it?

Bargain car insurance is risky when it comes to ensuring you have adequate coverage. Compare car insurance companies by their customer reviews and financial ratings in addition to prices.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jun 23, 2020

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Here's what you need to know...

  • Searching for the cheapest premium could end up costing you a lot of money
  • There are many ways to receive discounts on car insurance rates
  • You should always compare multiple companies to find the best deals on coverage

It is possible to buy cheap car insurance, but you need to be careful that you are receiving a quality policy that addresses all of your needs.

Enter your zip code now to start comparing car insurance rates from multiple companies!

There is more to a car insurance policy than a premium. When you are buying car insurance, you are buying benefits.

The benefits you buy determine the car insurance premium that you pay. The more benefits you have, the higher your rate will be.

However, there are ways to keep your car insurance premiums low and get a bargain on your car insurance.

The important thing is to remember that you need quality insurance, too, and not just cheap car insurance.

The benefits you buy have to be sufficient to provide you with financial protection.

The Benefits of Bargain Car Insurance

When you select the type of car insurance coverage you want, you need to consider all aspects of your financial status.

You need to buy liability as a state requirement, but how much you buy will depend on what you can afford to pay for out-of-pocket if you are involved in a car accident.

If you do not buy collision or comprehensive car insurance, then you need to be prepared to repair or replace your car with your own money if anything happens to it.

This is not recommended if you have a car that maintains some value.

An older model may not be worth insuring for comprehensive or collision, but if your car is worth thousands of dollars and you don’t have that kind of money sitting in a bank, additional coverage is a worthwhile investment.

Adding comprehensive and collision to your insurance will certainly raise the premium, but that does not take you out of the bargain car insurance business.

You can buy car insurance for a good deal and still get all of the coverage you need.

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What to Watch Out for With Bargain Car Insurance

The problem with some bargain car insurance policies is that they do not provide you with sufficient coverage and they leave you at financial risk.

This type of car insurance is not a bargain at all. Instead, it leaves you with a false sense of security until the day you have an unpaid claim.

Every car insurance company you consider should be analyzed for its reputation and its rating.

Fly-by-night car insurance companies are considered that for a reason.

A car insurance company that is here one day and gone the next typically translates into a policy that is here today and gone the next. When that happens, your bargain turns out to be a waste of money.

It is also important to read and understand the details of your policy.

Do not buy a policy that has lower coverage limits than what you expected, or a higher deductible than what was quoted. If you have to submit a claim, you want it to be free of surprises.

Choosing the Best Bargain Car Insurance

In order to choose the best bargain car insurance, shop around for different insurance companies and compare their financial ratings.

When you compare quotes, be sure you are comparing similar benefits, coverage limits, and deductibles so that you are truly making a comparison.

If you find a few companies that are all rated highly for their financial strength and received good reviews for customer service and claims payout, then you can feel confident choosing a policy from one of these companies.

As long as all of the quotes are for the same benefits and costs, then you can confidently choose the cheapest one and know that you got a bargain on your car insurance.

You can always reduce your car insurance even more and get an even bigger bargain.

Car insurance discounts are usually available for various reasons, such as multiple policies, standard or customized safety features, and installed security features.

Other ways to reduce premium costs include:

  • being a good student
  • passing a defensive driving course
  • maintaining a clean driving record

Anytime you can save money on your car insurance it is a bargain.

Everyone loves a bargain, and there is nothing wrong with that as long as the bargain is a good one. Do not sacrifice quality for cost because it could cost you in the long run.

Shop for bargain rates by comparing car insurance quotes from multiple providers now; just enter your zip code to get started!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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