Advantages of Buying the Cheapest Insurance for your Car

If you are shopping for car insurance, you know it can cost hundreds of dollars per year to insure your car. Since the car insurance market is fragmented and state-regulated, small changes to your policies can add up to thousands over the life of your car. Many drivers would be well served to consider the cheapest, legal insurance for their car. Here are some advantages of buying the cheapest insurance for your car.

1) You save money

The obvious reason to buy the cheapest insurance for your car is that you save money. To understand this concept, imagine an auto insurance company with 100 drivers as policyholders. 10 of these drivers get in an accident during the year and 90 drive the year accident-free. These 90 drivers will not file any claims and will not receive any money from the insurance company. The 10 drivers with accidents will file claims and receive money from the insurer. In this example, the 90 drivers who do not file a claim will be subsidizing the claims filed by the 10 drivers with accidents. Worse yet, these 90 drivers will also be paying the salaries of the company employees and profits to the company owners.

Over the long-run, a more expensive insurance policy will cost you money because you will not file a sufficient number of claims to recoup the premiums you pay to the insurer. By opting for the cheapest, legal policy, you reduce the amount you are contributing to claims of bad drivers and profits to corporate shareholders.

2) You save time

If you have an expensive insurance policy with a zero-deductible, you are forced to contact your insurer for every accident involving your automobile. Many minor accidents result in less than $100 of damage and could be handled in mere minutes by most drivers. However, if you need to file an insurance claim, you are forced to treat every accident the same and even minor fender-benders can consume hours of your time.

Auto insurers generally request a police report or witness statements for claims and always contact the driver multiple times for sufficient information to process a claim. It is doubtful that you enjoy communicating with your car insurance claims department and it is likely each claim will waste a dozen hours or more. When you purchase the cheapest insurance for you car, you reduce the number of claims you need to file with your insurance company. By paying for minor accident repairs out-of-pocket rather than filing a claim, you can save a considerable amount of time.

3) You gain flexibility

Every car insurance company has a strict list of rules that determine when and where repairs are made. Many mandate that drivers must take their car to a specific repair shop between specific hours on a specific day. Even companies that advertise flexible repair choices restrict the list of providers and limit the type of work to be performed. When you purchase an expensive auto insurance policy, you are locking yourself into choices made by your insurance company.

With the cheapest insurance for you car, you will be paying out-of-pocket for minor repairs. This gives you total control over the timing, nature, and location of automotive repairs. A cheap car insurance policy will provide you with flexibility.