Will a cheap auto insurance company cover my needs?

Cheap does not necessarily mean good. Make sure you do your homework and research the company's stability, customer service, and claims processing.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Nov 8, 2021

Advertiser Disclosure

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.

Things to Remember...

  • Driving without insurance is unwise as well as illegal
  • Save on car insurance by only purchasing necessary coverage
  • Ask your provider for discounts for good grades and a clean driving record
  • Bundle your policies with one insurance company to save money
  • Always compare several different providers before purchasing insurance

Everyone needs an auto insurance policy. Not only does a good car insurance policy protect you in the event of an accident, but it is also illegal to operate an uninsured vehicle.

Although everyone needs valid insurance, there is no reason to pay more than you need to for your policy.

While some individuals worry that a policy from a cheap auto insurance agency will not cover their needs, as long as drivers educate themselves and do plenty of research, they should be able to find affordable insurance that also gives them peace of mind.

Below are eight tips to help you find an affordable auto insurance policy that will also offer adequate coverage.

Enter your ZIP code into our FREE auto insurance comparison tool to see affordable and reliable rates compared!

1. Ask Your Current Provider About Extra Discounts

An easy way to see if you can save money on your insurance is to ask your current insurance agency if you qualify for any extra auto insurance discounts.

Your current provider might be willing to give you a discount just for being a loyal customer.

Of course, even if your current provider offers you a discount, it does not hurt to compare rates from your insurance company’s competitors to see if there is an even better deal available.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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2. Only Pay for the Insurance You Need

The amount and type of auto insurance you need depends on your vehicle and lifestyle. Figure out what kind of insurance you really need before you choose a plan.

If your car is older and you own it outright, you might only need a collision policy. A collision policy will cover damage sustained by your car in an accident.

Know the difference between collision and comprehensive auto insurance.

If your car is parked in your driveway and gets hit by a tree branch, you might have to pay for the repairs yourself if you have a collision policy.

However, if you have comprehensive coverage, which is more expensive but covers more types of damage, your insurance company will usually help you with the repair costs.

3. Bundle Your Insurance Policies to Save


If you have more than one insurance policy, consider getting all your insurance from one company.

Insurance companies often give a discount to customers who purchase multiple policies.

Instead of buying your homeowner’s insurance and car insurance from two different agencies, you could get both policies from the same company in order to save money.

Rates vary from company to company, so drivers need to do plenty of research to see if bundling their insurance plans is a good option for them.

4. Compare Insurance Rates Online For The Best Deal

The best way to make sure that you are getting a good deal on your vehicle’s insurance policy is to compare insurance rates.

When you compare insurance rates, make sure that you are comparing similar plans.

Comparing auto insurance rates used to be a time-consuming process. Drivers used to have to call insurance companies and spend hours getting and comparing quotes.

Fortunately, the internet has simplified the insurance quote comparison process. By visiting rate comparison websites, customers can find out which companies are the cheapest in just minutes.


Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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5. Give Yourself Plenty Of Time To Shop For A New Policy

Although comparing rates online makes finding cheap insurance agencies fast and easy, you should still give yourself plenty of time to shop for a new insurance policy.

When you choose a new insurance policy, you should consider more than just rates.

Take time to find out exactly what an insurance company offers before you make your final selection.

6. Keep Your Driving Record Clean

Drivers with clean driving records pay much less for insurance than individuals with multiple moving violations.

To make sure that you can find a cheap auto insurance policy that still offers you the protection you want, drive safely, obey all traffic laws, and keep your record clean.

A speeding ticket costs more than the initial payment; your insurance could go up after your infraction is processed.

7. Keep Your Grades Up

Another way to save on insurance without sacrificing coverage is to take advantage of good student discounts.

Some car insurance companies give extra discounts to students who earn high-grade point averages.

Good student discounts are not always included when you compare rates online, so you might want to call and find out if you qualify.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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8. Check Out An Agency’s Customer Service

Make sure that you check out an insurance agency’s customer service before you sign up for a policy. An easy way to test the agency’s responsiveness is to call or email them with a question.

You will be able to tell a lot about the company just from the way they handle your inquiry.

If they keep you on hold for a long time or do not return your email for days, you might want to select a different insurance company that takes customer service a little more seriously.

These auto insurance tips can help you have peace of mind when looking for cheap auto insurance that won’t let you down.

In fact, begin your search by entering your ZIP code into our FREE auto insurance comparison tool!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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