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I saw an ad for Otto claiming I could get insurance for as low as $35 a month. My current insurance is around $180. I figured it was worth a shot, but after entering my details, I was connected with a bunch of different agents. None of them could even come close to $35. The cheapest offer was around $160, and the agent admitted that the “$35” rate is for people with the absolute minimum coverage, perfect driving records, and other very specific circumstances that hardly anyone meets.
I came across a FB comment from someone who works at a body shop, saying that budget insurance companies often total your car if the damage is over $1500. On top of that, they said these companies usually underpay by about $3000 to $6000. Even though another person argued against this, it made me really cautious about choosing a company that’s all about being the cheapest. It just doesn’t seem like the kind of risk I’d want to take.
From my own experience, I’ve noticed that some budget insurance companies, like Otto, tend to appraise vehicles significantly lower than their actual market value—sometimes by $1000 or even up to $5000. When I heard this, it really made me uneasy.
The idea is that these companies want to pay out as little as possible in case of an accident. Honestly, that feels like a huge risk. If I were to get into an accident, I wouldn’t want to end up getting unfair compensation for my car, especially if it’s worth more than what they’re willing to pay. It’s a gamble I’d rather not take.
Based on the fine print at the bottom of their website, “Otto Quotes, LLC does not provide insurance plans directly to consumers nor do we represent any specific providers”. This makes it clear to me that they’re just a referral service. So, if you’re looking for actual insurance quotes, you might as well go directly to the insurance companies themselves to avoid the extra step and potential spam.
From what I’ve seen on Reddit, Otto Insurance isn’t even a real insurance company that underwrites policies. They seem to be more of a middleman that collects your information and then sells it off to a bunch of different insurance agents. So, you’re not really getting insurance from Otto, but from whoever ends up calling you.
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