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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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 exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Aug 28, 2020

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Things to Remember...

  • There is no perfect best standard for a cheap auto insurance provider
  • While some policies may seem cheaper than others, you need to make sure that you are getting good coverage
  • Cheap insurance or not, a consumer wants to know if his insurance provider is going to pay to the owner of the auto insurance policy after an accident claim or not
  • The next factor pointing out a better auto insurer is whether that company has a variety of products to choose from
  • Cheap auto insurance providers with easy-to-understand billing processes, particularly with online account access, make managing insurance a lot easier for their customers

If some are looking for the ideal cheap auto insurance, they will be sorely disappointed. There is no perfect best standard for a cheap auto insurance provider. The ideal doesn’t exist.

If there was, it would likely be a charity that provides insurance coverage for free and gives everyone a comprehensive policy.

That said, there are a few steps consumers can take to differentiate which cheap insurance companies will provide good coverage versus others who just disappear after receiving your premium payment.

Use our FREE auto insurance comparison tool by entering your ZIP code to see the best rates for you now!

Price Versus Value

Saying to yourself, “Where should I try to buy cheap auto insurance?” The primary criteria many who wish to buy cheap auto insurance use when first screening insurance providers tend to be price.

As a result, insurance providers don’t post their prices because it could prematurely drive away business. Instead, they provide a personal quote which gives the company a chance to make personal sales contact.

Hopefully, the discussion can lead to up-selling a more expensive product if the customer is interested. However, consumers who are cost-sensitive frequently just migrate to the lower expense.

Unfortunately, this approach could hide a provider who doesn’t handle claims very well.

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Claims

Because the price isn’t very often a good sign of quality service, experience with processing claims tends to be a better indicator.

Cheap insurance or not, a consumer wants to know if his insurance provider is going to pay to the owner of the auto insurance policy after an accident claim or not.

What’s the point of paying for coverage if the insurer denies repairing your damaged vehicle?

So knowing whether a cheap insurer couples good price with good claim response is a huge factor. That said, not everyone will be experienced with every company.

So, referrals and opinions of other customers become key to filling this information gap.

Product Diversity

The next factor pointing out a better auto insurer is whether that company has a variety of products to choose from. Not everyone wants or can afford a full comprehensive plan.

Maybe Joe wants a high deductible, but Mary just wants coverage under all circumstances.

A cheap auto insurance company that also provides a choice of policy types with affordable rates tends to be more attractive and provides a better-tailored coverage to consumer needs.

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Loyalty

Company loyalty rewards tend to be important for consumers.

If a cheap auto insurer doesn’t acknowledge and reward its return customers with a discount, then what stops them from migrating to another insurer who offers the same or better service for the same price?

Insurers need multiple methods to lock customers in and loyalty discounts make better cheap insurance companies stand out from the crowd.

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Billing and Bureaucracy

Cheap auto insurance providers with easy-to-understand billing processes, particularly with online account access, make managing insurance a lot easier for their customers.

Many consumers don’t think about this aspect when first shopping for coverage.

However, being able to manage, change policies, and pay bills on the fly with quick access to records solves a lot of questions and issues, even late at night at 2 am in the morning.

Trust Your Mechanic

Listening to your mechanic can tip a consumer off as to which insurer works better with repairs than others.

Mechanic shops who handle a lot of insurance-paid repairs know by experience which companies are easy to work with and which ones nickel-and-dime the process.

They also know which companies have a reputation for shirking customers.

However, since they get paid by insurers, many mechanics won’t openly disparage the hand that feeds them.

That said, getting a mechanic to talk off the record can provide a wealth of information on which cheap insurance companies to avoid.

Government Sources

If you’re big into research, every state has an agency that manages insurance companies.

Many such agencies have a presence on the Internet and produce reports on insurance profits, complaints, performance, and claims processing.

If you use the information available, you can find a number of statistics that tell you real facts about which companies work better with consumers and which don’t.

Free Auto Insurance Comparison

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Customizing

Much of what makes a good insurance company for a person depends on what they want personally. One set of factors won’t work for everyone.

Instead, each consumer has to find the right mix of customer service, price, response, access, claim processing and more until he or she is comfortable.

When that mix is found, then it works. And that company becomes the best cheap insurance company the person could find for his or her needs.

Additionally, needs change over time. When you’re young, a basic insurance company that just provides liability coverage works.

When you’re in a career with a family, your auto insurance needs to broaden, giving you different answers to what you need auto insurance for.

You need a company that can handle these needs and adjusted for different policy demands. You may even want an insurance provider that sells both auto insurance as well as other products for insurance needs combined.

This trend tends to occur when people want to consolidate their financial tools and assistance rather than keep multiple accounts all over the place.

Be Willing to Float

Finally, never feel you’re locked into one insurance company. Review your policy every two years and decide if you need to switch. Compare rates and services with other companies and find a new fit if necessary.

Doing so will keep your costs down and your auto insurance matched closely with your needs. Use our FREE auto insurance comparison tool right now with your ZIP code to see what rates meet your needs with the lowest cost!