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Is Cheap Car Insurance Worth The Price?

Is there anyone that doesn’t want cheap car insurance? Saving money on car insurance is definitely a good thing. In an economy where income has been flat while insurance prices have been rising fast, saving money is good.

Like all stories, there’s another side to the cheap car insurance story. What you’ve never been able to know is, “what do you give up when you buy cheap car insurance?” Knowing that giving good products away at a low price isn’t the model by which successful businesses operate, we took a deep dive into what people actually get for the insurance they buy. In this post we will summarize our deep dive into easy-to-understand info for you.

The Problem With Cheap Car Insurance

The problem with cheap car insurance is the same problem that exists with all insurance. Due to no transparency in insurance, you don’t know how much protection you’re actually getting. You may now be thinking, “that’s not true, I know exactly how much insurance I have.” After all, you know the limits of your coverage. Unfortunately, coverage limits don’t tell you what you need to know when buying insurance. Even though your policy has a dollar amount of losses that may be covered, you have no way of knowing if the insurance company will be actually pay that amount.

Here’s an example. I had what my company told me was good health insurance. I also had what advertisements tell me was good car insurance. For the car insurance I had a multi-hundred thousand dollar policy. I also had a multi-million dollar umbrella policy. When I was hit by a car, no insurance company would pay the medical bills. Not my health insurance, not the insurance of the driver that hit me. Not even my own underinsured motorist coverage. The reality of the dollar amounts on policies is that they do not specify how much a company will pay. Instead, they state the maximum amount an insurance company will ever pay. Coverage limits only limit the insurers liability. Coverage limits do not indicate how much a company will pay.

The problem with all insurance is that you don’t know the culture of the insurance company. You don’t know if they are good about paying claims, or if they’re bad about paying claims. Of course they all say they’re good. Of course. Until the data started getting measured, why not claim to be great. Nobody knows so the company can say anything they want.

The Best Way to Find Cheap Car Insurance

It turns out the best way to find cheap car insurance is no different than the best way to find the best insurance. Transparency is how you find the answer to which companies are good and which aren’t. You’ve come to the right place for insurance transparency. At ValChoice we’ve been working to deliver insurance transparency for years.

We’ve made it really easy for you to know whether you have good your insurance. Best of all, we want you to know. That’s why we offer free information for consumers. All you have to do is click the button below, enter your name, email address and the state where you buy insurance. We don’t sell your email address to anyone. We do send you a free report on your insurance company.

Free Car Insurance Report Card

What we Now Know About Insurance

Our years of work delivering transparency has yielded some interesting findings. For example, most people assume that if you pay more you get a better quality product. That assumption doesn’t always apply to insurance. In fact, it’s not uncommon that the most expensive products are the lowest quality products.

The reason this is true is marketing. With insurance, consumers rarely interact with the product. Accidents are rare, and the majority of the accidents are not serious. Most insurers don’t care about small accidents. Usually they will just take care of it to keep you happy. However, big accidents are a different story. When a significant accident occurs, the worst insurers will resist paying claims. When the insurer resists, frankly there isn’t much consumers can do about it. The reasons for this include that it takes guts, money and time to fight a huge insurance company staffed with teams of lawyers. Second, some states have limited consumer protection laws when it comes to consumers fighting insurance companies.

The consumer being handicapped when it comes to fighting an insurance company is one reason it’s important to choose the right company. With transparency, choosing the right company is now possible.

Why we do This Analysis For You

When you buy meat, you know the fat content. When you buy any food or drink you know the number of calories, amount of carbohydrates, alcohol content, etc. The same applies for nearly everything you buy. However, all of these are optional purchases. When you buy insurance, it’s not optional. How can it be that for a mandatory purchase, there’s no meaningful information? There is no meaningful measure of the product quality.

The Travesty and Tragedy of Insurance

Requiring consumers to spend money with no measure of product quality is a travesty. Too often this travesty turns into personal tragedy. However, these personal tragedies are rarely reported. This is because the industry requires confidentiality agreements when they make settlements with policyholders.

As an example, when I was hit by a car, I had at least as much information as the average consumer about insurance companies. The information I had convinced me I was insured by good quality companies. When I found out that was not true, it was too late. I had been duped. I had been duped like every other consumer in America is being duped. That problem is about to end, and ValChoice is leading the charge to change this problem.

Consumers Deserve to Know

We don’t care if all you care about getting the cheapest price. Like the food you eat, we want you to know what you’re buying. You’re spending hard-earned money to protect your families financial future. You deserve to know the quality of the protection the company you buy from provides. In fact, ever consumer should demand to know this information.

Actions You Can Take

The good news is this is a problem that is easily solved. All you have to do is take the following three steps:

  • Get a free ValChoice report
  • If you company is good, tell a friend
  • If your company is bad, change to a good company

When enough consumers change from bad insurers to good insurers, the whole industry will improve. Suddenly, companies will be competing on product quality rather than on the size of the advertising budget.

Change has never been easier to deliver. Start participating now with a free ValChoice report on your insurance company.