Some companies are advertising “name your own price” car insurance. While this is a great marketing strategy, and certainly gets everyone’s attention, is it really true? Can you actually name your own price for automobile insurance?
If your idea of naming your own price means that you will bargain for a low price with premium coverage and low deductibles, then the answer is no. No company will sell you their very best products at a price you suggest simply because you say so.
However, the “name your own price” concept does not really hinge on such unrealistic requests. What companies mean when they use this term is that they are flexible enough to work with you to come up with a price that fits your budget, while still providing you with the coverage you need.
Here is how “name your own price” typically works. You give the company your information, such as age, location, driving history, and type of vehicle. From there, the company gives you a range of prices from which you can choose.
At the very lowest end of this price scale is liability only with a high deductible. If you do not add collision and comprehensive coverage, uninsured motorist coverage, and you raise your deductible to $1000 or even $2000, you will likely receive the very lowest price the company has to offer, especially if you have a good driving record and an older, less-expensive model of car.
The next price level might include comprehensive and collision coverage, a mid-range deductible, such as $500, and liability and uninsured motorist coverage. You will pay more for this policy because you are receiving more coverage, and because your deductible is lower. You can raise your deductible to $1000, thereby lowering your premiums, but you must be prepared to pay the first $1000 of any claims you file.
Finally, at the highest end of the scale, would be liability coverage, uninsured motorists, comprehensive and collision, roadside assistance and towing, and all the other extras the company sells, such as special medical benefits.
Along with this, you might choose a very low deductible, typically $250 or even $0. If you choose this type of coverage, you are going to pay the highest price for your insurance of any of these examples.
Clearly, “name your own price” is not really about naming your own price. It is about getting the coverage you need at a price you can afford. By playing with your coverage levels, your deductible amounts, and other factors of your policy, you can usually arrive at a price you can afford.
Some companies do not offer this service. Instead, they have “levels” of coverage from which you can choose. You will not be able to have as much flexibility if your car is financed, either, as most financial institutions require you to carry a minimum of liability, comprehensive, and collision—what is known as “full coverage” insurance.
If you are interested in “name your own price” insurance, there are several companies which offer this service. Progressive is one such company; in fact, Progressive coined the “Name Your Own Price” slogan. Other companies offer this service as well, in various forms; you can get quotes from your auto insurance profile from any company, once you decide what you want.
Beware dropping too much insurance or raising your deductibles to a high level, however.
If you do, you may not be covered in various situations, or you may not have the cash to pay your deductibles if it becomes necessary. A good plan is to save the amount of your deductible in a savings account, just in case you need to access that money quickly.
