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Used Car Insurance: Your Options

Auto insurance is one of those necessary evils. You pay a lot of money to have it, in the hope that you’ll never need to use it. But, since we all have to have it, let’s examine a few of the options.

We’ve all seen the Geico gecko, and Progressive’s cave man on TV. They both claim that they can save you money, but can they really?

Well actually, they can. Provided you have good credit, and a clean driving record. These big-brand insurance companies cater to a higher-end client. So, if you have a decent beacon score, and you’re over the age of 25. They can usually give you a pretty competitive price, relative to other full-service insurance companies.

Big companies like Geico, Allstate, and State Farm can offer  exceptional customer service, and fast claims handling because they cater to more stable customers. In their eyes, people like this are less likely to have an accident. Plus, they can usually sell them homeowners insurance too. Which allows them to make more money to provide such excellent service.

If you don’t fit their criteria however, you’ll probably get a really high quote. But not to worry. There’s many smaller companies out there who would be happy to have your business.

Since these smaller insurers don’t have the gigantic over-head of a big-brand company. They can afford to insure people with less than ideal records. But keep in mind, processing a claim can take a lot longer, and it might involve some negotiating too.

Because these small companies insure riskier drivers, they try to save as much as they can when it comes time to pay a claim.

These smaller insurance companies can be found by searching an online insurance portal. Or, you can look in the yellow pages. Either way, you can usually find an affordable insurance policy if you search around.

Many local insurance agencies carry more than one brand of insurance. So they can provide you with several quotes at once. These local agents can give you a broad range of coverage options. Plus, they can assist you when it comes time to file a claim.

When you decide on a carrier, take a look at the cost between the different deductible amounts. Since a deductible is the amount that will come out of your pocket in the event of a claim, make sure that you can afford to pay it. A higher deductible will give you a lower payment. But, it also reduces your amount of coverage.

Many companies will automatically include things like uninsured motorist coverage, and roadside assistance into their price. So, make sure that you ask what comes with the policy that they’re quoting you.

Another thing to keep in mind. Getting quotes from insurance companies like Geico and Progressive will actually effect your credit score. When they check your credit, your Beacon score goes down 1-5 points. So, it’s best to pursue other options, if you’re concerned about your credit.

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