#1. ‘Cheapest’ May Not Really Be The Cheapest

Sure, anyone can claim to have the cheapest auto insurance rates around. These companies spend a lot of money on advertising to convince people they have the lowest prices. Some even go far as to say that there’s none like them when it comes to paying for the same coverage.

The truth is, the ‘cheapest’ insurance rate may very well be the most expensive option for drivers who live in a different state. Yes, that predictive model may sound very nice but they churn out higher rates more often than not. If they think that you’re more likely to stick with one provider, then they will hit you with what’s called ‘price optimization’.

‘Price Optimization’ is illegal in 16 states but the other 34 are free to do so. In fact, if you check right now there’s a huge difference of $859 per year between lowest available quotes and average insurance quotes. So, the best thing to do is shop and compare using independent sites to get to the bottom of it.