Home » Insurance » Auto Insurance » Cheapest Budget Auto Insurance

Cheapest Budget Auto Insurance: Budget or Mainstream Insurance Companies?

Updated: October 18, 2018

Getting the cheapest budget auto insurance deal is never easy, especially for those who want a thorough car insurance policy.

Cheap car insurance policies are available, but they often come at the expense of some important policy protections.

By looking for the cheapest auto insurance, customers sometimes have to sacrifice one or two features in the policy.

For example, the cheapest auto insurance rates are usually available on policies that do not have comprehensive and collision insurance coverage.

But it is still possible to find the right balance between a quality car insurance policy and one that has low monthly premiums.

Getting the Cheapest Budget Auto Insurance

When considering auto insurance on a budget, it is important to understand that it is impossible to get a thorough and “full” policy without paying higher premiums.

Getting multiple insurance policies from the same company can also help get the cheapest budget auto insurance plans.

However, it is possible to get discounts on higher tiered insurance plans, which ensures the best of both worlds: a very good policy along with lower monthly premiums.

For example, many insurance companies offer discounts for safe driving, which means that customers who do not have a record of accident claims will have an advantage when getting insurance premium quotes. In addition, these discounts extend to customers who do not have any traffic tickets in the past few years.

Getting multiple insurance policies from the same company can also help get the cheapest budget auto insurance plans. For example, getting car insurance and renters or homeowners insurance from a same company will result in a discount on both policies. Combining car insurance with a term life insurance policy is also a possibility.

If a customer does not qualify for any such discounts, they may have to consider getting a less “comprehensive” policy in return for lower insurance premiums.

Choosing Cheap Car Insurance Companies

Getting the cheapest auto insurance policy does not mean that a customer has to deal with an unprofessional company. There are some companies that offer the cheapest car insurance, but they also have terrible records when it comes to servicing claims or helping their customers.

To find the cheapest car insurance, it is necessary to consider more factors than the price.

When there are so many insurance companies that have cheap car insurance policies for customers with lower income, there is no reason to deal with a disreputable business.

Start by making a list of all the companies in your area that offer cheap car insurance policies. Look up all of their customer service records and reviews. If any company has a bad record, eliminate them from the list.

To find the cheapest car insurance, it is necessary to consider more factors than the price. Yes, a cheap insurance policy saves on monthly premiums. However, dealing with a bad company also means spending more money every time you have an accident.

Trust well-established companies that operate in multiple states, as opposed to small-time operations.

Advantages of the Cheapest Budget Auto Insurance

When a customer finds the cheapest auto insurance rates, the biggest advantage is the money that goes out of their bank account each month. Cheap policies have much lower premiums, which results in significant yearly savings.

Being able to pay the insurance premiums in a lump-sum manner is also a benefit of the cheapest car insurance policies.

The cheapest budget auto insurance policies are also ideal for older, less valuable cars. If a customer is driving a car that is only worth a few thousand dollars, it is illogical to get an expensive insurance policy. For less valuable cars, the cheapest car insurance makes sense.

By choosing a mainstream company with budget offerings, customers get to experience quality claims servicing and customer service, while saving money.

Being able to pay the insurance premiums in a lump-sum manner is also a benefit of the cheapest car insurance policies. When the rates are so low, customers can pay the entire year’s premiums in one go and ensure that their car is never without insurance.

By selecting the cheapest budget auto insurance, customers ensure they are never driving their car on the road without any form of insurance.

Disadvantages of the Cheapest Budget Auto Insurance

Unfortunately, not every cheap car insurance policy has the level of benefits found in the pricier options. The downside of selecting the cheapest car insurance is that customers must compromise on the level of coverage they can expect.

Without collision coverage, drivers’ vehicles are not protected from damage incurred by accidents that were their fault.

For example, the cheapest auto insurance rates will include policies that do not have comprehensive and collision coverage. This means that the car is not covered from non-driving incidents, such as theft, vandalism and natural disasters.

Without collision coverage, drivers’ vehicles are not protected from damage incurred by accidents that were their fault.

Having a cheap policy with low premiums also means paying higher deductibles. This means that every time the insured individual gets into an accident, a higher amount of the damages is paid through their own pocket. As a general rule, higher deductibles come with lower insurance premiums.

There is a chance that some auto insurance companies will increase rates at the time of renewal, depending on what happened in the previous year. For example, customers with cheap policies who get into multiple accidents might find their premiums increased the following year.

Budget or Mainstream Insurance Companies?

Even if you are looking to save money by getting the cheapest budget auto insurance, it never makes sense to go with a budget company. While these companies have very low rates, it usually means that they are cutting corners in other areas to make up for the deficit.

While they pay lower premiums, the customer can still enjoy the benefits of being associated with a major insurance company.

A budget company is likely to take longer in processing insurance claims, which means the customer has to wait longer before they are compensated for damages. Similarly, these companies usually have worse customer service departments.

In contrast, cheap car insurance policies at mainstream companies deliver a better overall experience to the customer. While they pay lower premiums, the customer can still enjoy the benefits of being associated with a major insurance company. These benefits include quicker claims processing and excellent customer service.

Mainstream companies are also likelier to offer incentives to customers, such as lowered rates for good driving and a lack of traffic tickets.

Overall, the cheaper insurance policies at mainstream companies come with much better “intangibles,” as compared to policies from budget companies.