Why is there such a big difference in premiums from reputable car insurance vs. "cheap"??

Question

Sorry for my use of generalizations, but its no big secret.
reputable: American Family, State Farm, Farmers etc
"cheap": progressive, geico, etc.
why are my quotes 3 times higher for the reputable, is it worth the drastic rate increase?

Answer 1

The "cheap" carriers tend to cover less. For example, Geico doesn't cover aftermarket parts where as Allstate will. (I know, I've been there.) If you have tinted windows and your window is broken, Geico pays for the window, not the tint; Allstate will pay for both. Additionally, the reputable carriers have more resources to assist with repairs, etc whereas the cheap carriers may not have the same level of or quality of resources.

Also, the "cheap" carriers find themselves in more lawsuits than the reputable carriers.....cheap is worried about the bottom line, reputable is worried about defending their insured.


Is it worth it? That depends on what you need actual coverage for, which goes beyond comp & collision categorizations.

Answer 2

I recommend you to try this web page where you can compare rates from different companies: http://INSUREFOREVERYBODY.INFO/index.html?src=2YAklgnzMQ26

RE :Why is there such a big difference in premiums from reputable car insurance vs. "cheap"??
Sorry for my use of generalizations, but its no big secret.
reputable: American Family, State Farm, Farmers etc
"cheap": progressive, geico, etc.
why are my quotes 3 times higher for the reputable, is it worth the drastic rate increase?
Follow 11 answers

Answer 3

Compare quotes for free at http://HELP.QUOTESDEAL.NET/-lrbkxXQ182

RE Why is there such a big difference in premiums from reputable car insurance vs. "cheap"??

Sorry for my use of generalizations, but its no big secret.
reputable: American Family, State Farm, Farmers etc
"cheap": progressive, geico, etc.
why are my quotes 3 times higher for the reputable, is it worth the drastic rate increase?

Answer 4

Because they all have different loss experience with the drivers they insure.

Back in the '80s the Auto Club had dirt cheap rates for sports cars because nobody with a sports car got insurance with them thinking they would be way expensive. So because they didn't have many sports cars (and sports car claims to pay), they were real cheap.

The thing to do is get with a good quality company and stick with them for a long time.
.

Answer 5

The reputable companies are cheaper for some vehicles, ages, etc. They price higher on risks they don't want - like young drivers. Plus, companies rates are changing all the time. You may want to try getting a quote online. I am paying less than ½ of what I was before.

Go to: http://www.insureme.com/landing.aspx?Refby=615451&Type=auto

Take care,
Casey

Answer 6

I've had the "premium"--farmers, the "cheap", 21st century and the "super cheap" esurance. Which did i prefer? Esurance, cause I am getting better coverage and paying less.

I had problems with both Farmers and 21st after accidents so just pay the lowest amount you can for good coverage.

Answer 7

The cheap ones are fine until you get in an accident. That's when it might be hard to get service.

Answer 8

well. state farm just likes to rape people. its just that simple.
i had state farm, untill i had an accident, i was car-less for 6 months, they NEVER helped me, just charged more and more and more.

really i would not put progressive in the group you have there, i have local help from progressive, i go talk to ONE person who knows me, and my truck, personally. i like that regardless of the price, but they are much less expensive. much more is done online with that company so there is less spent on overhead.

Answer 9

compare insurance comp-anies

Answer 10

the cheaper ones dont have all the big money lawyers like state farm and allstate to fight against your claim