Cheapest Car Insurance is not Always the Best 

If you’re a Connecticut resident shopping for car insurance with a “cheapest price wins” mentality, you could be putting your consumer reputation and financial future at great risk. Typically, there is a price-value tradeoff with just about any service or product you’ll purchase. Choosing to buy the cheaper option may be preferable in some instances, but cheapest car insurance is not always the best and may end up costing you a lot more in the long run. Here are some things you’ll want to consider before buying car insurance for the lowest price that you can find.  

Minimum Car Insurance Coverage

Buying a basic or minimum policy that includes only the state-mandated coverages and limits can be a big gamble. You may think that the chances of being responsible for a serious accident are very low, but even the best drivers can make mistakes. If that happens to you, you could be personally on the hook for a lot of money as a minimal-coverage policyholder. Be very careful about advertising gimmicks such as “dollar a day,” or “pick your own price” auto insurance packages that some carriers advertise. If you’re paying incredibly cheap car insurance rates, chances are your coverages are bottom end as well. If you’re involved in an auto accident that is your fault, you could find yourself in a very difficult situation if your policy isn’t adequate to cover the loss.

Driving around with minimum coverage may keep you legal, but this can be a risky game when you consider the importance of protecting yourself, your family, your assets, and your future earnings. John Ruskin, a prominent social thinker and professor at Oxford once said, “The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”  

Higher Deductibles in Connecticut

You should also consider that there is usually a tradeoff between your rate and your deductible. Typically, the higher the deductible you choose, the lower your rate; the lower your deductible, the higher your rate for that coverage. If you’re paying the lowest possible car insurance rate, it may mean you have a high deductible. As you compare quotes, keep in mind that if you ever have to make a claim, you’ll have to pay that high deductible, potentially canceling out any “savings” you thought you had with a cheap car insurance policy. High deductibles do not expose you to as much financial risk as low limits, but be sure to choose deductibles that your budget will be able to absorb if you need to file a claim.   

Prior Limits and Your Future Premiums

Many insurance carriers will view you as being less risky and offer you better rates if you have a history of carrying higher auto insurance liability limits, or “prior limits.” On the flip side, if you have a history of carrying only the minimum required liability limits, you may see a higher premium when you quote with another carrier. Here again, cheapest is not always best when it comes to car insurance. 

Have a Value Mentality

Spending a little more for auto insurance can greatly enhance the value represented in your policy. Auto Insurance isn’t something you should skimp on. You don’t need to seek out the highest premium or the highest limits, but opting for the cheapest coverage is almost always inadvisable. Carrying adequate auto coverage can not only help you avoid the risk of large uncovered medical bills, loss of assets, and loss of future earnings, but it will position you for better premiums in the future. Don’t be “pennywise and pound foolish.” Be sure to focus on the coverage that you need first, and then consider the price.

Looking for great value when it comes to car insurance companies in CT? Consider Plymouth Rock Assurance. Plymouth Rock offers solid auto coverage, great customer service and industry-leading claims service. You can find more information on this site with regards to new driver tips or rideshare.  For any other questions you have, call Plymouth Rock Today!       

Plymouth Rock Assurance® and Plymouth Rock® are brand names and service marks used by separate underwriting, managed insurance, and management companies that offer property and casualty insurance in multiple states. In Connecticut auto insurance is underwritten by Plymouth Rock Assurance Corporation and Palisades Insurance Company. Each company is a separate legal entity that is financially responsible only for its own insurance products. Actual coverage is subject to the language of the policies as issued by each separate company.

Call 855-993-4470, get a quote online, or find a local agent to find out more about how the cheapest car insurance is not always best in Connecticut. For more information, visit our Contact Us page.