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I saw one person share that their Progressive policy was $476.50 a month. When compared to the advertised rates under $100, it seemed like a huge difference. However, it seems like the general consensus is that these “budget” companies aren’t actually going to be much cheaper than the major insurers for most drivers, especially those with any blemishes on their record.
I came across a comment from an insurance broker who actually tests the legitimacy of these budget insurance companies. They found that the quotes you initially see are almost always based on the absolute minimum levels of coverage. This means that while you might see a very low price, it’s likely not for the same amount of coverage you currently have, making it an apples-to-oranges comparison.
I read a comment pointing out that if an insurance quote is drastically cheaper than others, it’s probably because they’re offering bare minimum liability limits and no physical damage coverage. So, while my monthly payment might be low, I’d be taking on a lot more financial risk if I were to get into an accident that caused significant damage to my own car.
I saw a user mention a specific company, Otto Insurance, and warned that it’s often just a lead generator. They claim that Otto doesn’t actually offer insurance policies but instead collects your information and sells it to numerous insurance agents, leading to a flood of spam calls and emails. One person even reported getting 5 to 10 calls per hour after using their website.
It was mentioned that those very low advertised prices often represent the best possible price under the best possible circumstances, which only a very small percentage of people will actually qualify for. So, while it might technically be possible to get insurance for under $100, the chances of an average driver with any kind of driving history or a slightly older vehicle actually getting that rate seem slim.
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