Are discount auto insurance companies trustworthy?

Q: 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.

Q: 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.

Discount auto insurance companies are trustworthy and can provide reliable coverage. You can save up to $100/mo. by comparing rates from different companies.

UPDATED: Oct 13, 2023Fact Checked

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Written by:

Mathew B. Sims

Editor-in-Chief

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Written by Mathew B. Sims

Editor-in-Chief

Reviewed by:

Joel Ohman

CEO and CFP®

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...

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Reviewed by Joel Ohman

CEO and CFP®

UPDATED: Oct 13, 2023

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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: Oct 13, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

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.

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 are looking to go with isn’t listed on one of these sites, it might be a wise decision to avoid them altogether.

Be sure to choose from highly rated auto insurance companies before you buy.

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.

Customer reviews on sites such as Angie’s List have a membership fee, but the information is well worth the price you will pay.

The information will contain both positive and negative information regarding experiences that customers have had with the company you are looking to contract with.

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Get 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 coverage and deductible.

Always ask the more expensive insurer if they are willing to price match.

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 will not directly price-match their policies with those of a competitor; however, many may be willing to lower their prices in order to gain a new customer.

Your overall premium cost will be determined by your driving history, credit history, age, and other factors, but you may be able to influence those costs by comparing and offering price quotes from other companies.

Work Through an Insurance Agent

There are many trustworthy auto insurance companies that are largely unknown to the general public.

The main reason for this is that they control costs by choosing to refrain from large-scale advertising.

Working through an insurance agent in order to find the best insurer at the best price is a great way to get quotes from otherwise invisible insurance companies.

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.

Enter your ZIP code into our FREE comparison tool to get cheap quotes from reliable car insurance companies right away.

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.