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I keep seeing ads for Otto Insurance promising really low rates, and it almost seems too good to be true. I’m wondering if anyone on Reddit has actually used them and ended up saving a significant amount of money without a terrible experience. If you have, could you share what your previous insurance cost and what you pay now with Otto (or the insurer they connected you with)? Also, what was the customer service and claims process like, if you had to use it? I’m trying to figure out if these ads are legit or just a way to get my information.
I was paying around $90 a month for bare-bones liability insurance on an older car. Otto’s ads made me think I could get even cheaper coverage. After submitting my information, I got a flood of calls, and the absolute lowest quote I received was $85 a month, again for minimal coverage. The “savings” of $5 a month was negligible, and the sheer volume of spam calls I received in exchange made it a terrible experience. I ended up staying with my original insurer.
Before I learned what Otto really was, I considered using them to compare my current insurance cost of $150 a month. However, after reading online reviews and seeing that they primarily sell your information, I decided against it. The risk of getting bombarded with spam calls and emails, without any guarantee of actually finding a better rate or a reliable insurance company, just wasn’t worth the potential small saving. I’d rather stick with a reputable company even if it costs slightly more.
I work in a body shop, and we often see customers with various insurance providers. While I don’t have direct insight into their initial savings, I can say that we’ve definitely seen some of these “budget” insurance companies, including those you might find through a service like Otto, try to appraise vehicles $1000-$5000 lower than their actual value when there’s an accident. So, even if someone initially saved a bit on premiums, they might lose much more if they ever have to file a claim.
Someone I know clicked on an Otto ad that looked very similar to the T-Mobile app. They thought they were on the T-Mobile website and entered their information. Within minutes, their phone started ringing non-stop with insurance agents. They were paying $250 a month before, and after all the calls, the best quote they found was $235, hardly a significant saving, and they regretted giving their information out so freely.
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