Are discount auto insurance companies trustworthy? (2024)
Discount auto insurance companies are trustworthy and can provide reliable coverage. To find the best policy, you'll want to compare quotes, customer service, financial ratings, and discount insurance reviews. You can save up to $100/mo by comparing rates from the top car insurance companies.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Joel Ohman
Certified Financial Planner
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. Joe...
Certified Financial Planner
UPDATED: Mar 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 18, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Discount auto insurance companies can provide adequate, reliable coverage
- Research any potential car insurance provider before purchasing a policy
- Use a car insurance agent to help find a reputable insurance company
Are discount auto insurance companies trustworthy? The answer to this age-old question is a tough one to answer with a simple yes or no. Simply put, each auto insurance company is different.
One discount auto insurance company may be trustworthy while another is not. However, you don’t have to guess when trying to determine the best auto insurance companies. Compare quotes, coverage options, financial ratings, auto insurance discounts, and customer service to find a reputable insurer.
Start by entering your ZIP code into our FREE auto insurance comparison tool to compare cheap rates from trustworthy companies.
How to Know if Discount Auto Insurance Companies Are Trustworthy
There are various things you can do to ensure that the discount car insurance company you choose is reliable, including checking their customer service ratings and comparing quotes.
Research Car Insurance Providers
The most important thing you can do before signing up with any auto insurance company is to research that company fully, including discount insurance reviews of customer service and financial strength.
One of the fastest ways to do this is by checking their ratings on several different rating agencies websites. Agencies such as A.M. Best, J.D. Power and Associates, and Moody’s Investor’s Service rate auto insurance agencies big and small to determine which ones offer the best services and which ones you should avoid.
Of course, the pricier insurance firms usually end up on the top, but discount insurance companies will also be rated on these sites. As a matter of fact, if the insurance company you’re looking to go with isn’t listed on one of these sites, it might be a wise decision to avoid them altogether.
You can also check with the Better Business Bureau. Obviously, a company with a failing BBB grade should be avoided; don’t take it for granted that a company with a good rating is foolproof.
Consumer rating agencies such as Angie’s List can also be invaluable when it comes to getting the low down on a particular discount insurance agency, though you’ll pay a membership fee.
The information will contain both positive and negative information regarding experiences that customers have had with the company you are looking to contract with.
Compare Quotes
Another way to make sure that you are getting an insurance policy from a trustworthy source is to get quotes from a wide variety of insurance companies.
Find free cheap auto insurance quotes as well as quotes from their pricier, name brand counterparts. Make sure that each quote is exactly the same in terms of the types of auto insurance coverage and auto insurance deductible. In addition, always ask the more expensive insurer if they’re willing to price match.
Read More: How to Evaluate Auto Insurance Quotes
Usually, they will bring the price of a more expensive policy in line with a discount auto insurance policy, allowing you to find discount auto insurance pricing while keeping your business with a reputable company.
In most cases, insurance companies won't directly price-match their policies with those of a competitor. However, many may be willing to lower their prices to gain a new customer.Tracey L. Wells Licensed Insurance Agent & Agency Owner
There are various factors that affect auto insurance rates, such as driving history, credit score, age, and other factors, but you could influence those costs by comparing and offering price quotes from other companies. (Read More: How Credit Scores Affect Auto Insurance Rates)
Work Through an Insurance Agent
There are many trustworthy auto insurance companies that are largely unknown to the general public.
You need it. But how do you get it🫤? We're talking about car🚘 insurance. https://t.co/27f1xf1ARb can help you get started and make an informed📊 decision regarding the coverage you need. For the info you need, check out👉: https://t.co/U1DDipUs78 pic.twitter.com/k5F8jDetnk
— AutoInsurance.org (@AutoInsurance) August 6, 2023
The main reason for this is that they control costs by choosing to refrain from large-scale advertising. Working through an insurance agent to find the best insurer at the best price is a great way to get quotes from otherwise invisible insurance companies. (Read More: How can I find auto insurance agents in my area?)
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
More About Whether Discount Auto Insurance Companies Are Credible
Thoroughly research any insurance company you are thinking about using in order to determine the level of customer satisfaction they offer, whether or not their pricing structure is competitive, and how easy their claims service is to use.
Frequently Asked Questions
What are discount auto insurance companies?
Discount auto insurance companies are insurance providers that offer lower premium rates compared to traditional insurance companies. They achieve this by providing discounts based on various factors such as safe driving records, vehicle safety features, bundled policies, and more.
Are discount auto insurance companies trustworthy?
While it is important to evaluate each insurance company individually, many discount auto insurance companies are trustworthy. However, it’s crucial to research and consider multiple factors, such as the company’s financial stability, customer reviews and ratings, claims process, and coverage options, before making a decision.
What are the advantages of choosing a discount auto insurance company?
- Lower premiums: Discount auto insurance companies typically offer lower rates, allowing you to potentially save money on your car insurance.
- Customizable coverage: Many discount insurers provide a range of coverage options, allowing you to tailor your policy to your specific needs.
- Flexible payment options: These companies often offer flexible payment plans, making it easier for policyholders to manage their insurance expenses.
- Online and digital services: Discount insurers often provide user-friendly online platforms and mobile apps, enabling convenient policy management, claims filing, and customer support.
What are the disadvantages of choosing a discount auto insurance company?
- Limited coverage options: Some discount insurers may offer fewer coverage options compared to traditional insurance companies, limiting your choices.
- Customer service concerns: As discount insurers may have fewer physical branch locations, customer service support may be primarily conducted online or over the phone, which may not suit everyone.
- Potential coverage gaps: Low premiums may come with reduced coverage limits or exclusions, so it’s important to carefully review policy terms and conditions to understand what is covered and what is not.
- Claims handling differences: It is essential to research and ensure that the discount insurance company has a good track record of prompt and fair claims handling.
How can I determine if a discount auto insurance company is trustworthy?
To assess the trustworthiness of a discount auto insurance company, consider the following steps:
- Research and reviews: Look for customer reviews and ratings to gauge the experiences of other policyholders.
- Licensing and regulation: Verify if the insurer is licensed and regulated to operate in your state. You can check with your state’s insurance department for this information.
- Financial strength: Review the financial stability and strength of the insurer by checking their ratings from reputable rating agencies like A.M. Best, Standard & Poor’s, or Moody’s.
- Claims handling: Research how the insurer handles claims and if they have a reliable and efficient claims process.
- Customer service: Consider the level of customer service provided by the insurer. Look for accessible communication channels and responsiveness to customer inquiries.
Who is the most trusted insurance company?
In terms of customer service ratings and size, State Farm and USAA are some of the most trusted auto insurance companies.
Who has the best customer service for auto insurance?
Generally, USAA is touted as having some of the best customer service in the auto insurance industry.
What insurance companies have the most complaints?
Of the top auto insurers, AAA and Allstate have the highest complaint index from the National Association of Insurance Commissioners.
Who is cheaper: Geico or Progressive?
Usually, you’ll find the cheapest rates with Geico, though Progressive has better average rates for high-rsik drivers.
Why is Geico so cheap?
Geico sells its insurance directly to consumers, cutting out the need for in-person agencies, and it also offers various discounts.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Certified Financial Planner
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. Joe...
Certified Financial Planner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.