2 Reasons Not to Choose Auto Insurance Based on Price Alone

by Christy Bieber | Published on Sept. 5, 2021

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Think beyond just premium price when deciding which insurance company is the best.

Auto insurance is one of the most important purchases that drivers make. Not only is car insurance required, but it can also provide crucial financial protection in the event that disaster strikes.

That's why it's important not to get so hung up on premiums that other important features are disregarded. In fact, there are two big reasons why motorists should not pick their auto insurance policy solely based on which insurer offers the lowest cost option.

1. How an insurer handles claims is important

Auto insurance claims usually are made after disasters happen. When a car accident occurs, a car is stolen, or a vehicle sustains damage from some other cause, drivers are often facing a lot of stress. They may be injured as a result of the collision, worried about whether they will be held liable for the accident, or concerned about how they can quickly get their car fixed or replaced and back on the road.

The quality of insurance coverage a driver has will determine whether the stress mounts during the claims process or whether the company helping them makes things as easy as possible. High-quality insurers will act quickly to initiate an insurance claim and will provide good communication throughout the process. They'll also offer the protections that the policyholder is entitled to based on their premiums.

On the other hand, some auto insurance companies may give the policyholder a lot of hassle. This could range from slow responses to unfair claim denials to poor communication. No one wants to deal with these things during a situation when they need to get back on their feet after a crash. So make sure to look for a car insurer with a solid reputation for good customer service during the claims process.

2. Drivers need to get the right coverage

Not all insurers offer the exact same protections. For example, some insurers provide the option to have vehicles fixed with original parts, especially if they are classic cars. Others offer new car insurance for vehicle models for the first several years.

Drivers need to get the coverage that makes sense for their specific vehicle and their personal finances. This means you may have to look for more than just cheap car insurance. In some cases, it means paying a little bit more for specialized protections that end up offering important peace-of-mind.

Ultimately, the choice of insurer can affect whether a driver is fully protected from loss after accidents and how easy or difficult it is for a motorist to take advantage of the coverage that is in place. While premium costs matter, opting for the cheapest insurance could end up costing drivers if that insurer doesn't offer comprehensive protection and good service.

So look for an insurance company that offers a good blend between affordable prices and a top-notch reputation for protecting its customers. That will put you in a much better position if things go wrong.

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