How to Avoid Cheap Car Insurance Scams

Being scammed by an unscrupulous car insurance company is fairly common these days - especially with all the new online insurance companies popping up everywhere. Here are some things to watch out for when choosing cheap car insurance.

Difficulty: Moderately Easy

Instructions

1. Read reviews on the car insurance company before making a commitment with them. On major companies, complaints are easy to find by doing a simple Google search. Try things like "companyxyz sucks", "companyxyz reviews", or "companyxyz complaints". You might be surprised by what you find.

2. When getting auto insurance quotes, make sure to go to the big guys first, like Progressive, Geico, and Esurance. Many times these reputable companies actually have better rates than the ones you've never heard of that are promising you "cheap car insurnace".

3. Know your state minimums for liability and uninsured motorist coverage. If your vehicle is financed and you need comprehensive coverage, know what your lender expects from your insurance policy as well. Compare insurance quotes with the same coverage amounts.

4. Be aware that some companies out there will try to "low ball" you on your car insurance rate. For example, they'll give you some really great rate, but then a month later they'll send you a letter saying there was some mistake and your insurqnce policy actually costs $200 more.

Tips & Warnings

• Many of the larger and popular companies like State Farm, Geico, and Allstate are that way for a reason -- they actually provide decent service! So keep that in mind when choosing an insurance provider. The fly-by-night companies you've never heard about may not actually be the best deal, even though they claim to be a "cheap car isnurance provider".