Overhaulin'

Why not get cheap car/auto insurance?

I'm getting a car and need insurance. I'm from Toronto, Ontario, Canada. There are popular/established companies which offer auto insurance, but I find these costs to be very expensive compared to the smaller and cheaper insurance companies. I understand there's less coverage and services, but if you just want cheap and legal insurance, why not go to the small companies? Thanks.

Public Comments

1. yes why not...provided u check to make sure the co will not screw you in an accident...many small co's can charge less because the go out of business all the time..
2. I agree. To me insurance is like buying a $1.00 lottery ticket for $ .50. I'm not getting ripped off but I'm not getting a deal either. Nothing to get exited about. I only have it because it is the law.
3. Cheap and legal will screw you at claim time. You get what you pay for. You got the money to take the big insurance company to court if they don't pay based on what you thought they should? Probably not if you're looking for the cheapest insurance you can find.
4. The most important thing to remember when buying auto insurance is to cover "Your" loses. Here in the U.S. their are lots of people who drive without any insurance. You want your car repaired or replaced and your in hospital bills taken into consideration. The cost could be substantial, so get the best insurance that you can afford.
5. Well, when claim time comes around, and you have less coverage and less service, you could end up writing a check for the uninsured part of the claim!
6. Usually the quality and level of service is better with larger companies. The are some very good smaller companies around, but check how long they have been around. Sometimes there are strange provisions in the policy (I knew of one where the policy was only good in state). Usually the price difference greatest when you are a relatively new driver or have had 'problems'. If you do go with a cheaper policy, shop around at each renewal if only to see how much you are saving. Check with friends to see if they have a company they've had success with. The larger companies use more complex underwriting so their prices are more distinct to the risk than smaller companies. Ergo higher prices.
7. Small companies are good in that they may save you some money... they may also be more or a risk because of their small size and lack of assets to pay for their clients accidents. Regardless of what company you go with, there are additional ways you can save money: ** Annual Mileage - The lower annual mileage you drive, the less likely you are to get into an accident = cheaper insurance. Be conservative with your estimates but stay truthful. If you totally lie, the insurance company could actually deny coverage if you get into an accident. ** Deductibles - The higher the deductible (the dollar amount you agree to pay if something happens) the less you pay for insurance. ** Discounts - Be sure to ask if there's a discount for any clubs or organizations you belong to. Also, careers in teaching, science/math/engineering (or bachelor's degrees in those same fields), military & health care are the most common. ** For more free info on how to save money on your car insurance, visit the website below.