With the economy in shambles, many people find themselves struggling with finances and in an attempt to save money sign up for the cheapest auto insurance quote they can find online. But purchasing auto insurance solely on the basis of the initial rates quoted by auto insurance companies can turn out to be a bad decision, one that entirely defeats the purpose of getting insurance in the first place, and one that may put you in the worst possible financial crisis.

Unless you pick auto insurance companies on the basis of their reliability, financial stability and customer reviews and complaints, chances are that you will find yourself stuck with an insurance provider that does not have the means or inclination to respond to your claims the way you need. Moreover, the initial quote being low is no guarantee that your insurance rates will remain the same. Reputed, well ranked auto insurance companies, on the other hand, have a reputation to maintain and the funds to pay out when you file a claim.

Rather than limiting yourself to auto insurance companies that advertise the lowest quote in the market, widen your search and look for the most exhaustive coverage at the best price and from the most reliable insurance provider that you can afford. Also, dig deep and explore the policies, benefits and discounts of all the companies you come across. You will find that these can be an unexpected deal breaker because some companies may turn out to be more economical in the long run even if their initial auto insurance quotes were not as competitive as others.

Reputed and reliable auto insurance companies offer a variety of special discounts, value added benefits and other features and it’s always a good idea to find out whether you are eligible for the same. A steady decrease in your deductable every year that you maintain a clean driving record, discount rates on completion of a Defensive Drivers Course, and compensation for any services you avail in the event of accident related injuries are just some of the benefits provided by good auto insurance companies. Drivers under the age of 25 who have completed a certified driver’s training course and students with an exemplary academic record can look forward to receiving credit from their standard auto insurance companies.
Many auto insurance providers encourage their customers’ concern for their own safety by providing discounts on the coverage of cars with anti-theft devices and air bags. Due to the benefits provided, purchasing auto insurance from the right company means bigger savings and greater satisfaction as the years go by.

According to the National Highway Traffic Safety Administration, there were over 33,808 fatal motor accidents in the USA in 2009 alone. With the rising numbers of automobile accidents and subsequent lawsuits, scrimping on your auto insurance could mean a loss of thousands of dollars. Look at your auto insurance as a long term investment rather than a government mandated requirement; after all, it could potentially save you a fortune in repairs, medical bills and other damages.

Author's Bio: 

Christoper Smith is a retired personal finance consultant, interested in adventure living. He loves to explore new places, people and cultures with his wife. He writes regularly during his travels; mostly on the road, from his trailer. His interest lies in the fields of finance and insurance home, life and auto insurance - his favorite subjects from the past.