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I’ve been bombarded with ads promising incredibly low car insurance rates, like under $100 a month, from companies I’ve never heard of. My current insurance is way more than that, so it’s tempting. But it almost seems too good to be true. Has anyone actually switched to one of these “budget” online insurance companies and genuinely saved a lot of money without any major downsides? I’m curious to hear real experiences before I jump ship.
I read a comment suggesting that most companies don’t even check your driving history until about a month into your policy. They count on you disclosing any tickets upfront, and if you don’t, the initial low price you might have gotten is practically worthless because it will change significantly once they do check. This implies that those initial super low quotes might not reflect your actual premium once your full driving history is reviewed.
I remember reading an example of a company advertising “liability insurance $29,” but with “and up” in very small print. They pointed out that with three tickets as a young male, I’d definitely be on the “and up” side of those calculations. This really shows how the attractive low number is often just a starting point that most people won’t meet.
It was mentioned that those very low advertised prices often represent the best possible price under the best possible circumstances, which only a very small percentage of people will actually qualify for. So, while it might technically be possible to get insurance for under $100, the chances of an average driver with any kind of driving history or a slightly older vehicle actually getting that rate seem slim.
I saw a user mention a specific company, Otto Insurance, and warned that it’s often just a lead generator. They claim that Otto doesn’t actually offer insurance policies but instead collects your information and sells it to numerous insurance agents, leading to a flood of spam calls and emails. One person even reported getting 5 to 10 calls per hour after using their website.
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