Cheap car insurance: how to find it

A myth is a story that has never been true. It was created to fill a gap in the market. People wanted hope, so they told themselves stories about the time when it was true. Saying the words might create the magic to make it true. When cars had just been invented, they were limited to the rich who could also afford the high-cost insurance policies that went with them. Although Henry Ford introduced mass production and reduced the price of the car on the road, he did not reduce the amount it cost to give medical treatment to those injured in accidents. So, even during the Golden Age of the motor car, it was still relatively expensive to buy insurance giving a reasonable level of cover against the claims that could be made. However, because the initially high mandatory levels of liability cover have not kept pace with inflation, the actual cost of insuring at the bottom end of the market has become much cheaper.

Add to this a shift in corporate morality. During the last century, car insurance was profitable and, with the usual enthusiasm, companies worked to keep it that way. Now companies are more aggressive in their desire to maximize profit. So cheap car insurance usually means very limited cover and great difficulty if you should make a claim. Buying a cheap policy can turn out to be a very bad deal. Before you buy the cheapest check that:

1. the company is financially sound — it would be unfortunate if you paid your money only to find the insurer disappear a few months later;

2. the website run by your State's Insurance Commissioner — the best show how many complaints have been made against the insurers — and avoid buying from a company with a bad reputation; and

3. your family, friends and colleagues at work have no horror stories and that the forums and complaint sites do not say too many bad things about the claims department.

So, when the car insurance quotes come in and the cheapest rates are revealed, do not be tempted to buy just on the basis of price unless your research says they are offered by a reliable company that offers a good service. It may be far better to spend a little more and buy a policy from a company with a better reputation for quality of service.