Car Insurance. Should You Really “Name Your Own Price”?

Naming your own price for an auto insurance policy may not be the best deal for you. Generic, one-price insurance policies have a tendency to provide generic coverage, and you may not get the kind of service you would expect for paying only a little more. Since most people have customized insurance policies tailored for them and their car, choosing less than what you need is only an invitation for disaster to strike.

One example of why naming your own price could be a bad thing is a situation where you have earned safe driver status, graduated with a degree in architecture, and live in a gated community with private garages. Each of these facts is an insurance discount that could be applied to a more complete policy, saving you money without sacrificing the coverage you and your car need. Naming your own price will get you the most basic policy, and you may not even realize what you’ve given up until the time comes to file a claim.

The best method for choosing an auto insurance policy is to use an online website that lets you customize a policy and then compares the costs between multiple insurance companies. Using this method, you can make sure you are getting the coverage you need and being given credit for the discounts you have earned. You may still pay a little more than you would if you bought a generic policy, but you will be better covered and probably enjoy better customer support as well. The old adage that you get what you pay for is just as true in auto insurance as in retail purchases.

Naming your own price for an auto insurance policy can save you money on your premiums, but it is important to make sure that saving money is not going to cost you more in the long run. Remember that any claim amounts not covered by your insurance policy will be your own responsibility and could result in thousands of dollars in out of pocket expenses.

Posted in Car Insurance, Insurance.