When you get your first car and you have to find insurance, don't fall for the idea there is "a" cheap auto insurance company. There isn't one company above all others that has lower rates in every situation. Insurance companies are completely regulated by the state and are required to have their rating plan approved in order to sell it. Any amendments or changes in their rating plan have to go through a long process of red tape to accomplish it. That is a good thing; your insurance company cannot just take your policy and change the rate every month on a whim.
Myth #1: "Call us and you can save up to $400 on your car insurance."
The key here words are "can," and "up to." What they are really saying: "If you're lucky and you happen to be paying high risk insurance without checking rates in the past few years, we jus might be able to save you a bit of money if you now qualify for lower risk ratings. If you are already getting low, standard rates, there probably isn't much we can save you."
However, if you had an accident and maybe a couple of tickets a few years ago and you haven't bothered to check on insurance since your record cleared up, you might be in for some of those big savings. Not just with one particular "cheap auto insurance company," but any company.
Myth #2: "Ten minutes can save you..."
Unless you are a single person with one car and nothing on your driver's history that phone call to a so-called cheap auto insurance company is likely to take more than ten minutes. Besides, with an ad campaign like that, you can be sure they closely monitor their agents for fast on and off phone service. Lightening fast phone calls leaves much to be desired, such as listening and anticipating your needs.
Myth #3: "We can start your policy with just $59."
Sure, they might be able to do it, but then you can be just as certain you will have five more payments that are much larger than that amount. What they probably do is get your $59, then calculate the actual premium and divide into five payments, which will total your bill due for those five months. It proves they are not a cheap auto insurance company.
You are much better served by receiving accurate quotes for the entire six-month period and either paying in full up front for a discount, or divide the payments equally over the six-month policy period. Finding a true cheap auto insurance company will require a little bit of perseverance on your part to do quotes with as much accurate information as you have. You will probably find that two or three stand out of the crowd for better prices.
Once you find a few lower premium estimates, compare the companies more closely. For example, check their payment options, down payment requirements, availability of service and claims, and check their rating for financial stability. This is truly the only way to find "your" cheap auto insurance company.
