Buying budget car insurance may seem like a good idea, but you need to exercise caution while doing so.
There are so many options when it comes to car insurance that choosing the best policy can be confusing and finding a great policy that has a small price tag can be downright frustrating.
Theses policies do exist though.
We will show you how to find yours without losing your shirt.
The mistake most people make when they are seeking car insurance on a budget is to dismiss the large, national, insurance agencies.
They believe that these companies are all the same and that their policies are all pricey.
This type of shopper believes the best deals are found at the smaller agencies so that is where they go.
The problem with this reasoning is that it doesn't take into account that the larger companies can use their very size to influence the entire auto insurance industry.
A great example of this occurred when Progressive Direct Insurance entered the market in Massachusetts.
Due to regulatory changes Progressive Direct decided it was time to begin selling policies in MA.
Since they were a new company they needed to entice drivers to abandon their old companies and buy from them.
They were able to do this by offering auto insurance at rate never before seen in MA.
Part of the reason they could do this was that even if they operated at a small loss initially they would earn that money back over time by attracting more customers.
This is not something a smaller company could afford to do.
Progressive Direct, like all of the larger companies, also saves customers money by offering their policies online.
This means there are no auto insurance agents to pay.
In turn they can lower the price of a policy for people who buy it online.
This is the reason that the largest company in the state may just be able to offer you the best budget car insurance policy you can find.