when cheap car insurance isn’t best
So you've just taken the big leap and bought a new — or new-to-you — car. You shopped around to make sure you got a great price on a great machine, and now you're looking to save on car insurance.
We don't blame you. You've just made a serious investment, and every penny you can save on your car insurance policy is another that stays in your pocket.
But when it comes to saving on car insurance, cheaper isn't always better. We'll explain why you should look for a policy that combines affordability with adequate coverage (even if it costs a few extra bucks).
"Cheap car insurance" rarely translates to "best car insurance"
We've all heard the timeless (and tiresome) old saw that "you get what you pay for." From shopping on Amazon to trawling the waters of Craigslist, we all find ways to get what we want for next to nothing. But in the world of car insurance, the old adage still rings true.
Here are a few reasons why the cheapest car insurance available isn't always the best car insurance for you:
- Minimal coverage means minimal protection. While your state's minimum liability coverage looks tempting, consider how it'll help you after an unexpected accident. What seems like a money-saving decision at checkout time can quickly turn ugly when it's time to file a claim.
- Higher deductibles = more out-of-pocket expenses. Bumping up your deductibles will shave a bit off the top of your monthly insurance bill, sure. But it'll also increase the cost of filing a claim. Paying as much as $1,000 out of pocket in order when you file a comprehensive claim can make the money you saved on your premium feel paltry.
- Lower limits lead to increased liabilities. Available limits can seem astronomically high — far beyond the levels of damage you imagine you might inflict. But you'd be surprised how fast those limits can be reached and breached, leaving you liable for the excess. (Think fender-bender with a one-of-a-kind Bentley.)
A cheaper policy in action
Let's say you purchased auto insurance with state minimum bodily injury and property damage coverage limits of:
- $15,000 per person
- $30,000 per incident
- $5,000 for damage to property
You're a good driver, so you decide to take those limits plus $1,000 deductibles on comprehensive and collision coverage, declining all the optional coverages offered. And as a result, you manage to save a couple hundred dollars on your premium.
Everything's great … until months later, when an uninsured motorist hits you in the middle of an intersection when you had the green light. The repair bill quickly mounts into the thousands, and that $1,000 deductible means you've already spent several times what you saved at checkout.
This is where a better policy, with more coverage, can end up saving you a lot of money.
There are other — and better — ways to save on your car insurance
If you're looking for the cheapest car insurance without sacrificing vital coverages, look for the discounts available to you. Here are a few of our most popular discounts:
- Claim-Free discount
- Multi-Car discount
- Homeowners discount
- Good Driver discount
- Switch & Save® discount
- Fast 5® discount
- Paid-in-Full discount
- Vehicle safety discounts
Let's see … you don't own a home, and you've only got the one car to insure. But you're a safe driver, you're switching to Esurance from another provider, you're getting your quote online, your car has an antitheft device and daytime running lights, and you want to pay in full when you buy your policy.
Depending on which state you call home, that's up to 6 discounts you've racked up already! Oh, you've got a PayPal account, right? Make that 7 car insurance discounts that can help you save money.
Discounts may vary. If you're a current Esurance customer and have questions about your discounts, call us at 1-800-ESURANCE (1-800-378-7262).
So how do you get the cheapest and best car insurance?
It starts with smart shopping. Get and compare quotes side by side. It takes just minutes to get a free Esurance quote online, and while you're there, you'll be able to compare car insurance rates from other top insurers without leaving the site.
If you'd like to check on coverages beforehand, spend a minute with our online
Coverage Counselor® for quick tips and personalized recommendations. That way you'll know what to look for as you shop for the policy that fits you best.
Get safety discounts on your car insurance
Your car's safety devices can save more than your life — they can also help you save on car insurance. Find out more on the Esurance blog.
FAQ: Auto insurance discounts
If you have questions about the car insurance discounts available, you'll find answers here.
Discounts subject to eligibility. Coverages may vary between and are not available in all states. Terms, conditions, and exclusions may apply.