Beware Of Discount Auto Insurance

We have all been there. We hear the word DISCOUNT and our faces suddenly light up. After all, who isn't interested in saving money? We hope that the discount will be a "good deal." This is especially true with discount auto insurance. No one wants to pay too much for auto insurance. We have all heard the claims and know that discount auto insurance is out there. Are the deals too good to be true?

While discount auto insurance does exist, watch out! It could be a case of you getting what you pay for. With competition so fierce in the discount auto insurance industry, companies will cut their rates to get your business. In the end, however, it could cost you much more than any money you saved.

There are a few things to ask before going with a particular discount auto insurance company. Knowing these things may end up saving you a ton of money down the road.

The first thing to ask about is discount auto insurance company's payment terms. Do they take all major credit cards, or do they accept only cash? Do you have the option to pay them with a check? Do they charge you extra to break your premium up into monthly payments? There are some discount auto insurance companies that say you must pay your premium all at once. Be very leery of these discount auto insurance companies. There are quite a few of these discount auto insurance companies that are pure scams. They will take your money and deny all your claims. Even worse, they will "go out of business," rendering your discount auto insurance policy non-existent.

The second thing you can do is to ask questions and READ, very carefully, the terms of the discount auto insurance policy. What exactly is covered by the discount auto insurance company and what will the deductible cost you? If you are in an accident, what will the discount auto insurance company cover? Will they cover the hospital bills if you should injure another person? Make sure you have asked all of these questions before handing them a check or a credit card. You want to know everything you can about the discount auto insurance you are getting.

The last thing you can do is to find out more about the discount auto insurance company themselves. What hours do they keep? Are they local to your area, or do they maintain offices out of state? Do they have an operator available 24 hours a day in case you are in an accident after? Are they available before or after regular business hours? Get their address and phone number and research them. Are they registered as a reliable company?

Becoming informed about your discount auto insurance is critical. The more you know about discount auto insurance, the less likely you will be to end up paying a higher price in the end.