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I read a comment pointing out that if an insurance quote is drastically cheaper than others, it’s probably because they’re offering bare minimum liability limits and no physical damage coverage. So, while my monthly payment might be low, I’d be taking on a lot more financial risk if I were to get into an accident that caused significant damage to my own car.
I came across a comment from an insurance broker who actually tests the legitimacy of these budget insurance companies. They found that the quotes you initially see are almost always based on the absolute minimum levels of coverage. This means that while you might see a very low price, it’s likely not for the same amount of coverage you currently have, making it an apples-to-oranges comparison.
I saw one person share that their Progressive policy was $476.50 a month. When compared to the advertised rates under $100, it seemed like a huge difference. However, it seems like the general consensus is that these “budget” companies aren’t actually going to be much cheaper than the major insurers for most drivers, especially those with any blemishes on their record.
I read that even for someone with a clean record and other ideal circumstances, like being married, a homeowner, having good credit, and being over 40, they might see low premiums under $100 a month, but they also saw instances where people with the same good stats were paying around $300. This shows just how many variables affect the price, and a clean record isn’t the only factor for those rock-bottom rates.
I remember reading about someone who used to work for Geico, and they mentioned that if you have a ticket every 16 months—like the person asking the original question—it’s unlikely you’ll qualify for those incredibly low rates. This made me think that the advertised prices are probably just a way to grab attention rather than being realistic for everyone.
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